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Why it might be desirable for a firm to have higher added-value products?
Wiki User
∙ 10y 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.
Wiki User
∙ 10y ago
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