If the production costs fall and the selling price increases, the profit margin will increase.
举一反三
- If the production costs fall and the selling price remains the same, the profit margin will increase.
- If the production costs rise and the selling price remains the same, the profit margin will increase.
- A business sells product B. The fixed costs of the business are $125,000. The variable cost of product B is $25 and the required profit is $50,000. Expected production is 12,500 units. What is the selling price of product B?______
- If the size of a tax increases, tax revenue will ( ) A: increase. B: decrease. C: increase, then decrease. D: decrease, then increase.
- Which of the following is a definition of the Market Skimming pricing strategy? A: Add a profit margin to the total cost of producing the item B: Add a profit margin to the marginal cost of producing the item C: Set a high price initially then lower gradually to increase demand D: Set a low price initially to get a large market share, increase later