Asked by Mymuna Islam on Sep 24, 2024

​For jointly owned substitute products,cannibalization leads to MR______MC

A) ​Being higher than
B) Being lower than
C) Equaling
D) ​None of the above

Cannibalization

The decline in the number of units sold, income, or market control of a product following the release of a new product by the same company.

MR

Marginal Revenue, the change in total revenue that results from selling one additional unit of a product or service.

MC

The additional cost of producing one more unit of a product or service, known as marginal cost.

  • Grasp the pivotal position of marginal revenue and marginal cost in price formulation decisions.