When a downward-sloping experience curve exists, a company should usually sellin

Question

When a downward-sloping experience curve exists, a company should usually selling price of that product, in order to bring in higher revenues. a. Increase b. greatly increasec. decreased. not alter 24. the 25. Which situation(s) likely occur(s) with a push strategy? a. use of intermediaries b. high consumer demand c. unwillingness of manufacturers to produce to meet demand d. A and C 26. Knowledge of the price elasticity of demand for your product is helpful when setting a price. The less elastic the demand, the more it pays for the seller to a. drop the price b. raise the price c. leave the price where it isd. discontinue the item 27. If Canon, a major producer of digital cameras, follows a high-price, high-margin strategy what will likely happen to other companies in its market? a. they will go out of business c. they will advertise lessd. A or C b. they will want to compete against Canon 28 remains an important element in the marketing mix. It is the only element that produces revenue; all other elements represent costs. a. Current profit maximization c. Priced.Product quality leadership b. Market share leadership 29. Companies are fortunate to have demand that is more morebecause they may be able to set higher prices.

Explanation / Answer

Ans 24)

For Downward sloping learning curves Cost per uunit decreases which in turn incentivise to increase selling price level so a sto increase revenues

Hence option A is correct

Ans 25)

Option A is correct response Push strategy is a strategy in which marketing channels are used to push the services to sales channel

Ans 26)

Option B is correct response as COnsumer is not senstitive with the price change hence seller can increase the price without havinh any impact on demand

Ans 29)

More inelastic demand as consumer is less sensitive hence no direct impact on demand of that good

Ans 28)

Price is the important element that derives revenue  

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