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.
Learning Objectives
- Grasp the pivotal position of marginal revenue and marginal cost in price formulation decisions.