Your Company Plans to Increase the Monthly Fees It Charges

question 70

Multiple Choice

Your company plans to increase the monthly fees it charges to its clients, starting in September. You are drafting a letter to mail to your clients, to inform them of this increase and hopefully persuade them to keep their businesses with you.
-Which of the following statements would be best to include in this letter?

• A) This increase will allow us to give well-deserved bonuses to our salespeople.
• B) This increase will allow us to upgrade our infrastructures and better compete with our rivals.
• C) This increase will allow us to embark on an aggressive media campaign to woo new clients.
• D) This increase will allow us to provide you with additional benefits and with 24-hour support.
• E) This increase will allow us to pay down some long-term debt.

Analyze the relationship between price discrimination and firm's revenue and output.

Comprehend the broader economic implications of profit maximization and entrepreneurial activity.

Explain the necessity of differentiating consumer groups for price discrimination.

Understand the economic efficiency and diversity benefits in competitive markets.

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Definitions:

Wagering Purposes

refers to the use of funds or resources for betting or gambling activities.

Co-Insurance

A type of insurance coverage in which the insurer and the insured share losses incurred according to a specified formula.

Insured

A person or entity covered by an insurance policy, receiving protection against specified risks or damages.

Risk Of Loss

In contractual terms, refers to which party bears the financial burden if the goods are damaged or lost before delivery is completed.