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Dave Heads the Information Technology Department of a Small Company

question 81

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Dave heads the information technology department of a small company based in Atlanta that sells customized T-shirts over the Internet. The company has seen a surge in popularity and is planning to expand its operational base to four more cities. However, Dave has now been asked to come up with a strategy to cut down on the costs incurred in maintaining multiple servers in different cities to host the marketing and e-commerce sites. Which of the following measures will help Dave achieve his objective?


Definitions:

Prices

The amount of money required to purchase goods or services, typically determined by factors such as demand, supply, and production cost.

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at that price.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies with changes in the quantity of output sold.

Average Revenue Curve

Represents the relationship between the price of a product and the quantity sold, showing how revenue changes with varying levels of output.

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