0
Why it might be desirable for a firm to have higher added value products?
Wiki User
∙ 12y ago
to establish a brand name for example nike shoes have a high added value.
if the demand for the product of a firm suddenly soars due to some influencial events (example:the demand for the design of shades worn by psy suddenly soared after his mv Gangnam Style became famous) the firm can add higher added value and benefit when this kind of senario is witnessed to benefit as much as possible before the heat turns off.
higher added value gives a sense of luxury goods and people buy it either to show off or because they like the product but either way the sales go up.
if a firm has higher added value it can pay all the expenses such as wages, rent etc and still earn more profit(if it can add value without increasing cost.) and is successful in profit satisfying.
if a business can add value that is much greater than the cost of production the business is said to be successful.
Reanna Von
Add your answer:
Earn +20 pts
What are the factors that affect production?
* products might not be independent - think back to economics and marketing* customer loyalty might be lost when products are not available - profits lost may be more than the loss of contribution per unit in the long run* price elasticity of demand might be a factor* labour may be specialised and cannot easily switch between the two products
One option available to regulate a monopoly is?
In certain cases, the government might have to intervene by imposing fines or otherwise regulate the business. In the case of public goods, the government might actually have to be the producer of certain desirable, yet unprofitable goods and services.
How might the purchase decisions of consumers impact a market economy?
By buying some products, but not others, consumers might determine what is produced.
What are the factors that affect product mix?
* products might not be independent - think back to economics and marketing* customer loyalty might be lost when products are not available - profits lost may be more than the loss of contribution per unit in the long run* price elasticity of demand might be a factor* labour may be specialised and cannot easily switch between the two products
Why might a government intervene in the market economy?
Essentially, due to market failure of some type: the market does not efficiently allocate some desirable commodity and the government attempts to correct this misallocation.
Why it might be desirable for a firm to have higher added-value products?
to establish a brand name for example nike shoes have a high added value. if the demand for the product of a firm suddenly soars due to some influencial events (example:the demand for the design of shades worn by psy suddenly soared after his mv gangnam style became famous) the firm can add higher added value and benefit when this kind of senario is witnessed to benefit as much as possible before the heat turns off. higher added value gives a sense of luxury goods and people buy it either to show off or because they like the product but either way the sales go up. if a firm has higher added value it can pay all the expenses such as wages, rent etc and still earn more profit(if it can add value without increasing cost.) and is successful in profit satisfying. if a business can add value that is much greater than the cost of production the business is said to be successful.
Are Berts Bee's products organic?
Burt's Bee's products might be categorized more as a "natural" product than an "organic" product. This is because the vitamins in some of these products are reproduced in more stable forms and then added to the product.
Is Trubs the most desirable Irish woman around?
No. Andrea Corr might be.
Why might flexibility and open mindedness be desirable qualities in a scientist?
creativity is important
Why might flexibility and open-mindedness be desirable qualities in a scientist?
creativity is important
Is there honey in wheat corn and rye?
No. Apart from honey that might be added to some cereal products - such as for breakfast cereals - honey comes only from bees.
How might higher tariffs help America?
Higher tariffs would bring in more tax revenue. . They would also discourage the importation of the foreign goods to which they were applied. This might help the domestic makers of these products to increase sales and expand their businesses, leading to more jobs for Americans.
What are reasons a financial systems might fail to allocate resource to their most desirable use?
Credit rationing.
Is remot entry is necessary in metropolitan area networks?
No, it is not necessary. It might be desirable, depending on what you mean by remote entry.
What was the spare stamp for in World War 2 ration books?
Extra products that might be added to the ration listing. This provided some flexibility to add or remove certain items. Such as shoes, or tires.
Is it cheaper to purchase products from HP outlet?
It might depend on where your other options of buying products would be. Best Buy typically carries HP products for cheap, but you might want to look for specific products.
Why is it desirable to blow your nose when necessary?
Not always. People blow their noses after they sneeze, because they might feel as if there is snot in their nose. If it is necessary.
