Which of the Following Is a Reason for a Company

question 60

Multiple Choice

Which of the following is a reason for a company to raise its prices?

• A)to address the issue of overdemand for a product
• B)to win a larger share of the market
• C)to use excess capacity
• D)to boost sales volume
• E)to balance out decreasing costs

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Definitions:

Unit Cost

The total expense incurred in producing, storing, and selling one unit of a product or service.

Yield Management

A strategy used in various industries to maximize revenue by adjusting prices based on expected demand and supply constraints.

Operations Management

The field of management concerned with designing, overseeing, and controlling the process of production and redesigning business operations in the production of goods or services.

Demand Curve

A graph that shows the relationship between the price of a good or service and the quantity demanded by consumers.