Profit Is Computed as the Difference Between Total Revenue from Sales

question 36

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.

---

Definitions:

Spark

Typically refers to a small but bright flash of fire or electricity, often used metaphorically to describe the initiation or inspiration of something.

Spontaneous Recovery

The reappearance of a previously extinguished response in the absence of further conditioning.

Extinct

A term describing a species, family, or larger group of organisms that no longer exists anywhere on Earth.

Conditioned Response

A response acquired through learning to a stimulus that was once neutral but has been frequently paired with a stimulus that elicits an automatic response.