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Impact of Increased Sales on a Firm


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


Firm Behavior and Strategies

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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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