Profit Is Computed as the Difference Between Total Revenue from Sales

question 53

Essay

Profit is computed as the difference between total revenue from sales and total cost of production. Revenue depends on the market share captured by a company and the size of the target market. Various marketing decisions taken by managers are reflected upon the market share. The decisions also have an impact on marketing costs which in turn will affect the total cost of production. Construct an influence diagram that relates these variables.

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Definitions:

Synapse

The junction between two neurons where neurotransmitters are released, allowing signals to pass from one neuron to another.

Neurotransmitter

Chemicals in the brain that transmit signals from one neuron to another, influencing a wide range of bodily and psychological functions.

Norepinephrine

A neurotransmitter and hormone involved in arousal, alertness, and the stress response.

Dopamine

A neurotransmitter involved in controlling the brain's reward and pleasure centers, as well as regulating movement and emotional responses.