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Briefly Explain When a Company Should Consider Giving Something to Customers

question 35

Essay

Briefly explain when a company should consider giving something to customers for free.


Definitions:

Demand Curve

A chart that depicts how the quantity of a product demanded by buyers is related to its price, usually sloping downwards.

Marginal Revenue

The additional income earned from selling one more unit of a good or service, crucial for decision-making on output levels.

Unit Elastic

A situation in economics where a change in the price of a product leads to a proportional change in the quantity demanded or supplied, resulting in an elasticity of exactly one.

Tax

A compulsory financial charge or levy imposed by a government on individuals or businesses to fund public expenditures.

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