The Profit Impact of Marketing Strategies Project (PIMS) Analysis Shows

question 197

True/False

The Profit Impact of Marketing Strategies project (PIMS) analysis shows the relationship between market share and profits, as measured by return on investment (ROI); in short, the higher the market share of a company, the higher will be the ROI earned by the company.

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Definitions:

Factors Of Production

Inputs into the production process (e.g., labor, capital, and materials).

Profit

The financial gain made in a transaction or operation, calculated as the difference between the revenue earned and the costs incurred.

Short Run

A time period in economic analysis during which at least one factor of production is fixed, influencing the firm's decisions on output and pricing.

Profit

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.