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a. more than19,000 units per quarter.
b.19,000 units per quarter.
c. less than19,000 units per quarter.
d. It is impossible to predict the effect of a higher price on the number of units of a product that a firm will be willing to produce.
Answer option _____________________a
a. more than19,000 units per quarter.
More profitability for the manufacturer.
Choice A More than19000 units per quarter is the correct answer
Hi
I do agree with the answer.
However, allow me to present a different view. If price is the sole criteria, then yes A is the right option.
However, business decisions are never based on one factor. A higher selling price might result in fall in demand for the product and increased inventory. Inventory needs to be managed and there are costs for that. So it may be possible that with high inventory and reduced demand, there may not necessarily be motivation to produce more units.
The decision would be taken after considering the incremental costs and incremental revenue (if any)
My answer is based on reality. Otherwise answer A is fine if price is the sole criterion
a. more than19,000 units
I CHOOSE OPTION A
A is the answer because when price increase it will be more profitable to increase the production.
Option A is the correct answer here..................................
The answer is : Option ( A ),,,,,
Option(A) more than19,000 units per quarter.
a. more than19,000 units per quarter. ...........................................................................
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