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At a price of $299.95, the manufacturer of a portable gas-powered generator is willing to produce 19,000 units per quarter.

At a price of $349.95, it is likely that the manufacturer will be willing to produce:

 a. more than19,000 units per quarter. 

 b.19,000 units per quarter. 

 c. less than19,000 units per quarter. 

 d. It is impossible to predict the effect of a higher price on the number of units of a product that a firm will be willing to produce. 

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تم إضافة السؤال من قبل Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
تاريخ النشر: 2015/05/12
Wasi Rahman Sheikh
من قبل Wasi Rahman Sheikh , Warehouse Supervisor , AL MUTLAQ FURNITURE MFG

Answer option _____________________a

Alex Al Yazouri
من قبل Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

a. more than19,000 units per quarter. 

More profitability for the manufacturer.

Ahmed Abdi Mahad
من قبل Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

Choice A More than19000 units per quarter is the correct answer

Emad Mohammed said abdalla
من قبل Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The correct answer was: a. more than19,000 units per quarter..  

Jiten Surtani
من قبل Jiten Surtani , Supervisor (Accounts and Audit) , RSM Dahman

Hi 

 

I do agree with the answer.

 

However, allow me to present a  different view. If price is the sole criteria, then yes A is the right option.

 

However, business decisions are never based on one factor. A higher selling price might result in fall in demand for the product and increased inventory. Inventory needs to be managed and there are costs for that. So it may be possible that with high inventory and reduced demand, there may not necessarily be motivation to produce more units.

The decision would be taken after considering the incremental costs and incremental revenue (if any)

My answer is based on reality. Otherwise answer A is fine if price is the sole criterion

mohamed badawy
من قبل mohamed badawy , Head Of Operations , Almajdoui Logistics Company

a. more than19,000 units 

 I CHOOSE OPTION A

Ashraf Samir Sorour
من قبل Ashraf Samir Sorour , Head Of Finance And Administration , Revamp Consulting

A is the answer because when price increase it will be more profitable to increase the production.

Bello Abubakar
من قبل Bello Abubakar , Cinema 4D Render/Sketch UP, AutoCAD, ArchiCAD and Revit Specialist , Federal Housing Authority

Option A is the correct answer here..................................

Khaled Anwar
من قبل Khaled Anwar , Senior Sales Engineer , "Automotive company''

The answer is : Option ( A ),,,,,

Nasir Hussain
من قبل Nasir Hussain , Sales And Marketing Manager , Pakistan Pharmaceutical Products Pvt. Ltd.

 a. more than19,000 units per quarter. ...........................................................................

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