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If a Company Aims to Increase Profitability by Customizing Products

question 53

Essay

If a company aims to increase profitability by customizing products, services, and operations so it can respond to the differentiated needs and preferences of customers and employees in each of the countries where it operates, in which human capital should it invest?


Definitions:

Quantity Demanded

The amount of a product that consumers are willing to buy at a specific price point, at a given time.

Equilibrium Price

The market price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Supply Falls

A situation where the quantity of goods or services available decreases in relation to demand.

Price Floor

A government- or group-imposed price control or limit on how low a price can be charged for a product.

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