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The concept of increasing marginal cost affects a business's pricing strategy by influencing the point at which the cost of producing one more unit exceeds the revenue gained from selling that unit. As marginal costs rise, a business may need to adjust its pricing to maintain profitability, potentially leading to higher prices for consumers.

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How can the demand curve be derived using the marginal utility theory?

Marginal utility is the key concept underline demand .The height of a demand curve reflects marginal utility.The marginal utility curve resembles the demand curve. So, it is through the marginal utility we get the demand curve.


Why is marginal analysis involved in economics?

Economic theory makes much use of marginal concepts. Marginal cost, marginal revenue, marginal rate of substitution, marginal utility, marginal product, and marginal propensity to consume are a few examples. Marginal means on the margin and refers to what happens with a small change from the present position. It is the concept of economic choices to make small changes rather than large-scale adjustments. Marginal analysis is the key principle of profit-maximization in firms and utility maximization among consumers.


Why ethics is a fundamental business concept?

Why is ethics seen as a fundamental business concept


What is the concept of marginal cost of capital?

The marginal cost of capital (MCC) is the cost of the last dollar of capital raised, essentially the cost of another unit of capital raised. As more capital is raised, the marginal cost of capital rises.


The marginal benefit of an activity is?

The marginal benefit of an activity refers to the additional satisfaction or utility gained from consuming or engaging in one more unit of that activity. It is a crucial concept in economics, as it helps individuals and businesses make informed decisions by comparing the marginal benefits to the marginal costs. When the marginal benefit exceeds the marginal cost, it is generally advantageous to pursue the activity further. Conversely, if the marginal cost surpasses the marginal benefit, it may be wise to reduce or cease the activity.

Related Questions

What is equating at the margin?

It is a business economics concept which means at that point marginal cost equals to marginal benefit in which case there is no additional rewards to be gained or additional cost to be wasted.


What is an example of holistic marketing concept?

Holistic marketing is a strategy that considers the business as a whole. This strategy's goal is to develop and maintain multiple perspectives on the business.


What active reading strategy links the concept of highlighting key words and phrases in a text and annotating those highlights with marginal notes?

Annolighting the text.


How does the concept of enurement impact the long-term success of a business strategy?

The concept of enurement, which refers to becoming accustomed to something over time, can impact the long-term success of a business strategy by influencing how well employees and stakeholders adapt to and support the strategy. If individuals within the organization become comfortable with the strategy and its implementation, they are more likely to continue to execute it effectively over time, leading to sustained success for the business.


Is It Okay To Have A One-Page Application?

As long as your business strategy plan clearly describes your company concept, yes. In case you presently do not have or under 3-month sales, you will have to provide profit and loss forecasts additionally for your business strategy plan.


What business philosophy did the marketing concept give birth to in the 1990s?

The marketing concept remained the cornerstone of marketing channel strategy for some thirty years. It even engendered the popular 1990s business philosophy known as total quality management.


How can the demand curve be derived using the marginal utility theory?

Marginal utility is the key concept underline demand .The height of a demand curve reflects marginal utility.The marginal utility curve resembles the demand curve. So, it is through the marginal utility we get the demand curve.


Who gave the concept of law of diminishing marginal utility?

It is William Stanley Jevons


How does the concept of sustainability dovetail with the company's long-term business strategy?

The concept of sustainability aligns with a company's long-term business strategy by promoting practices that support environmental, social, and economic well-being. By integrating sustainable practices into their operations, companies can reduce costs, enhance reputation, and mitigate risks, ultimately leading to long-term success and growth.


What is the difference between a traditional concept of business and a modern concept of business?

The traditional concept of business is profit motive but the modern concept of business is service oriented.


What are the Differences between corporate strategy and marketing strategy?

as far as i know- while we cllasify the strategy it comes like this corporate-business-function-operation.in marketing concept corporate strategy set up with ovaral busiess concept and this made by the ceo.marketing stategy is a operational strategy which related product identification,advertising,selling etc.corporate strategy set up the objectives for the organization within th concederation of every single department not only marketing section.conventionally corporate strategy is supposed to be determined before marketing stategy.


What are the new product development of hul?

idea generation product concept market strategy business analysis development design test marketing commercialization