Identify the Three Types of Business Pressures, and Explain How

question 10

Short Answer

Identify the three types of business pressures, and explain how organizations can use IT to respond to each one.

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Definitions:

Marginal Cost (MC)

The expense incurred from manufacturing an extra unit of a product or service.

Marginal Revenue

The additional income that a firm earns from selling one more unit of a good or service, critical for determining optimal production levels.

Total Profit

The total revenue of a business after subtracting all costs and expenses related to its operation.

Profit Per Unit

Profit per unit is the amount of money earned from selling one unit of a product or service, calculated by subtracting the cost per unit from the selling price per unit.