top of page

Impact of Increased Sales on a Firm

Question

Discuss whether or not increasing sales of a product will be beneficial to a firm.

Category:

Firm Behavior and Strategies

Frequently asked question

Preview Answer

I. 🍃Introduction
- Brief explanation of the topic
- Thesis statement

II. Reasons why increasing sales revenue/income will be beneficial
- Increase profits
- Reinvest in R&D
- Employ more labour
- Make new and better quality products
- Economies of scale

III. Explanation of how revenue may increase if PED is elastic
- Definition of PED
- Elastic demand and its effect on revenue

IV. Reasons why increasing sales revenue/income may not be beneficial
- Lower price and profit
- Sales of other products may decrease
- Higher costs of production
- Diseconomies of scale

V. 👉Conclusion
- Summary of the main points
- Restate thesis statement
- Final thoughts and recommendations.

Ops... End of preview!

Already purchased Economics Study Pack subscription? Amazing! Click below

What's included 
 
✔️Full essay
✔️Tips
✔️Diagrams
✔️Marking Schemes
✔️Examiner's report

Economics Study Help
bottom of page