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Given the following information, calculate the firm's "return on investment" (ROI) . Net sales: $20,000,000
Net profit (after taxes) : $500,000
Investment: $10,000,000
Reservation Price Model
A model that defines the maximum price a consumer is willing to pay for a good or service.
Aggregate Demand
The aggregate need for all products and services in an economy, measured at a specific price level and during a particular time frame.
Marginal Revenue
The additional income generated from selling one more unit of a product or service.
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 various prices.
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