It is known as 'marketing' and 'supply and demand' - which is basically what a customer is prepared to pay.
To increase revenue. Revenue = Price x Quantity sold. So if a firm sells more products and/or sells products at a higher price, revenue will increase.
Added value allows firms to market their products more successfully, emphasising strength of brand as opposed to a commodity. They can charge higher prices, achieve a USP and obtain competitive advantage. Higher added value products are less price-elastic and harder to copy
supply ,higher prices, producers are willing to offer more products for sale than at lower prices.and the can increases the prices . and demand is was higher price for the companies.for the constomers
The general law of diminishing returns partially accounts for the upward slope of supply curves for individual firms and for market supply curves. Additional production eventually becomes ever more costly as output levels grow. Thus, firms may require higher prices to justify expanding their outputs. Moreover, higher prices embody greater incentives for firms to produce more output because profit opportunities are enhanced. A similar logic applies for the economy as a whole.
The general law of diminishing returns partially accounts for the upward slope of supply curves for individual firms and for market supply curves. Additional production eventually becomes ever more costly as output levels grow. Thus, firms may require higher prices to justify expanding their outputs. Moreover, higher prices embody greater incentives for firms to produce more output because profit opportunities are enhanced. A similar logic applies for the economy as a whole.
To increase revenue. Revenue = Price x Quantity sold. So if a firm sells more products and/or sells products at a higher price, revenue will increase.
so they can have a bigger profit margin
so they can have a bigger profit margin
Added value allows firms to market their products more successfully, emphasising strength of brand as opposed to a commodity. They can charge higher prices, achieve a USP and obtain competitive advantage. Higher added value products are less price-elastic and harder to copy
so they can have a bigger profit margin
supply ,higher prices, producers are willing to offer more products for sale than at lower prices.and the can increases the prices . and demand is was higher price for the companies.for the constomers
The general law of diminishing returns partially accounts for the upward slope of supply curves for individual firms and for market supply curves. Additional production eventually becomes ever more costly as output levels grow. Thus, firms may require higher prices to justify expanding their outputs. Moreover, higher prices embody greater incentives for firms to produce more output because profit opportunities are enhanced. A similar logic applies for the economy as a whole.
The general law of diminishing returns partially accounts for the upward slope of supply curves for individual firms and for market supply curves. Additional production eventually becomes ever more costly as output levels grow. Thus, firms may require higher prices to justify expanding their outputs. Moreover, higher prices embody greater incentives for firms to produce more output because profit opportunities are enhanced. A similar logic applies for the economy as a whole.
The higher the price the larger the quantity produced, as the price of a good raises existing firms will produce more to earn additional revenue.
YES
Pros: Higher profit margin - Higher contribution - More revenue per unit sold Cons: Lower demand for price elastic products - Fewer sold - Less total revenue
Things that are generally more expensive cost more because they have higher prices.