Businesses can increase their bottom line (income) in a variety of way: growing the top line...

Businesses can increase their bottom line (income) in a variety of way: growing the top line (revenue) by selling more products or services or charging higher prices, and/or decreasing costs. Explain how this this works in easy-to-understand language. Please use a variety of examples in your explanation

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Ans.
The business can increase its revenue by increasing the sales and rising the prices of teh products. The business shall differentiate between the inflated prices and the alienating customers. The business can also increase its customers by increasing the quality of their product or by improving its marketing strategies. By changing the prices of the product which means decreasing the prices of the product can also attract more number of customers towards the business, which shall ultimately benefit the business to acquire more revenue. For example, when firm A reduces the price of the commodity then more number of customers get attracted towards the commodity, as they get the same quality and quantity of the product at lower prices.
When the prices are increased, the revenue of the business shall increase as the units which will be sold will be lesser as per the price and quantity effect.

Rahul Sunny answered 1 year ago

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