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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.
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