Why companies want to save their open market share instead getting hold of more profit?
Company enjoy the potential to gain a huge profit by set their price on their product sophisticated even one and only 5%. This company could probably lose open market share by 10%, but still their bottom strip profit could bounce by more than 50%. Why these company would prefer 10% bazaar share, instead 50% profit?
10 pts. for suitable or detailed answer.
Answers:
To end competition. Why unstop your souk to an upstart?
Not sure only just how you doyour calculation and realize your conclusions. Depending on how much profit is involved in any given item, and how competitive the open market is, they could gain even high profit than that, or much smaller quantity or even lose.
Are you comfortable beside the permanent status price elasticity? It necessarily medium how much will sale increase or decline if the price is lowered or raise. If this number could be accurately calculated (which it can't except by making some assumptions) consequently businesses could set prices to take home optimal profits.
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10 pts. for suitable or detailed answer.
Answers:
To end competition. Why unstop your souk to an upstart?
Not sure only just how you doyour calculation and realize your conclusions. Depending on how much profit is involved in any given item, and how competitive the open market is, they could gain even high profit than that, or much smaller quantity or even lose.
Are you comfortable beside the permanent status price elasticity? It necessarily medium how much will sale increase or decline if the price is lowered or raise. If this number could be accurately calculated (which it can't except by making some assumptions) consequently businesses could set prices to take home optimal profits.