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Match each business model with the advantage it brings.?

a. Subscription Attractive prices for basic product B.Bait and hook Steady revenue and predictable profits C.Cutting out the middleman Reduction in transaction costs and processing time


What is revenue minus expenditures?

Profits


Profits will be maximized when marginal revenue?

Profits will be maximized when marginal revenue is equal to marginal costs. This will only happen in cases where there are fixed costs.


To reduce the level of inflation monetarists advocate a a sharp increase in short term interest rates b steady and predictable changes in the money supply c a decrease in govt spending?

The Answer is B) Steady and predictable changes in the money supply.


What is a revenue model?

Describes how the firm will earn revenue, generate profits, and produce a superior return on invested capital


A company is maximizing profit when marginal revenue?

A company maximizes profits when marginal revenue equals marginal costs.


Why are profit maximize when marginal revenue is equal to marginal cost?

Profits are maximized when marginal costs equals marginal revenue because fixed costs are now spread over a larger amount of revenue. This means that total cost per unit declines and profits increase. Another way to say this is that this is the effect of scale. When marginal revenue equals marginal costs, in a growing revenue situation, you gain economies of scale and higher profits.


A producers profits are maximized when marginal costs are?

equal to marginal revenue


What is a source of revenue?

profits that are generated thru distubuting of products of servies


A producers profits are maximized when marginal costs are .?

equal to marginal revenue


Profits is calculated by subtracting costs from what?

Profit is calculated by subtracting costs from revenue.


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