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Yes, it is possible for a company to increase its profits while simultaneously seeing a decline in its share price. This can occur if investors have concerns about future growth prospects, changes in market conditions, or if the profits are driven by one-time events rather than sustainable operations. Additionally, if the company fails to meet market expectations or if there are negative developments in the industry, the share price could drop despite improved profitability.
What else can I help you with?
How does increases in price increase profit?
My profit = the price I charge - my costs If it costs $1.00 to make a widget, and I sell it for $2.00 then my profit is $1.00. Now if I sell my widget for $3.00 my profit is $2.00.
Why is an equilibrium price important?
It is how sellers determine the best possible price for their products for optimal profit.
What is the price effect according to the law of supply?
The law of supply says; The supply will be increase due to increase in price and vice versa. The reason is that the seller will maximize his profit.
When a firm is maximizing profit what else will it maximize?
When a firm maximizes its profit, it automatically maximizes its shareholder value. When both profit and the shareholder value increase, in course of time, the overall firm value will increase. All these would undoubtely increase its share price in the market as well.
What are the demerits of privatization commercialization in Nigeria?
1 Increase the price of goods and services, the price of goods and services will go up since private owners can only make profit by charging reasonable price against government who usually render assistance for the people. 2 It may cause unemployment in Nigeria due to private owner that is in control now, what i mean is this private owner may want to increase their profit, and for them to meet up with maximize profit, they will have to reduce workers. and this may also lead youths into arm robbery and prostitutions.
Why increase in selling price doesnt increase profit?
It is simple that if the selling price is increased more then of cost increase then profit will increase but if selling price increased less then cost increased then there will be less profit or selling price increased in same proportion to cost increased then there may be no increase in profit. Besides that there may be so many other reasons for that.
How does increase in price increase profit?
My profit = the price I charge - my costs If it costs $1.00 to make a widget, and I sell it for $2.00 then my profit is $1.00. Now if I sell my widget for $3.00 my profit is $2.00.
How price effects can be decomposed into its income effect?
price effects income directly. if price is high then demands will down and profit will high. if price is low demand will increase. and profit will minimum. but due to high selling amount profit can be increase.
How does increases in price increase profit?
My profit = the price I charge - my costs If it costs $1.00 to make a widget, and I sell it for $2.00 then my profit is $1.00. Now if I sell my widget for $3.00 my profit is $2.00.
Why is an equilibrium price important?
It is how sellers determine the best possible price for their products for optimal profit.
What is the price effect according to the law of supply?
The law of supply says; The supply will be increase due to increase in price and vice versa. The reason is that the seller will maximize his profit.
When a firm is maximizing profit what else will it maximize?
When a firm maximizes its profit, it automatically maximizes its shareholder value. When both profit and the shareholder value increase, in course of time, the overall firm value will increase. All these would undoubtely increase its share price in the market as well.
What are the demerits of privatization commercialization in Nigeria?
1 Increase the price of goods and services, the price of goods and services will go up since private owners can only make profit by charging reasonable price against government who usually render assistance for the people. 2 It may cause unemployment in Nigeria due to private owner that is in control now, what i mean is this private owner may want to increase their profit, and for them to meet up with maximize profit, they will have to reduce workers. and this may also lead youths into arm robbery and prostitutions.
Is it possible to profit from both selling and buying the same stock?
Yes, it is possible to profit from both selling and buying the same stock through a trading strategy called "buying low and selling high." This involves purchasing the stock at a lower price and then selling it at a higher price to make a profit.
What is the profit?
fomula for profit is Sell price - Cost price= profit
Can you make a profit on shared ownership?
Yes, it is possible to make a profit on shared ownership by selling your share at a higher price than what you paid for it.
What is the farmula profit?
fomula for profit is Sell price - Cost price= profit
