If a Profit-Oriented Marketing Manager Doesn't Know the Exact Shape

question 104

Multiple Choice

If a profit-oriented marketing manager doesn't know the exact shape of the firm's demand curve, marginal analysis:

• A) is useless.
• B) may be useful anyway-because a profitable region usually surrounds the best price.
• C) will suggest the same price as break-even analysis.
• D) suggests that the only sensible approach is to follow the market leader.
• E) None of these alternatives is true.

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Definitions:

Marginal Revenue

The additional revenue that a business earns from selling one more unit of a good or service.

Market Price

The ongoing cost at which an asset or service is available for buying or selling in a specific market.

Microchips

Small semiconductor devices that contain an integrated circuit, used in various electronic applications.

Price Effect

The impact on consumer demand and market supply when the price of a product changes, influencing the quantity bought and sold.