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There are several possible reasons.
One is to get rid of old stock. When a new model or version of a product is introduced, it can be quite difficult to sell the old version. Businesses have money tied up in the stock of these old items so holding on to these products has a cost to the business. There may come a time when it is better to sell the products at a lower price than continue holding on to them.
Sometimes some products are offered at a lower price to attract customers into the store. The expectation (hope) is that once the customers are in the store, they will also buy other products - quite possibly ones where the profit margin is greater.
Another reason is to destroy competition. If you are running a business supplying some commodity and suppose other businesses enter the same market. You could start selling your products at a price where the profit is very low or even negative. Competitors will have to match the price (since it is a commodity) and, provided you can maintain the low price longer than they can, you will bankrupt them. In many cases this is not legal, but that depends on the law proving it.
What else can I help you with?
Why do the products of multi digit numbers with zeros and one digit numbers sometimes have zeros in them and sometimes have no zeros in them?
The product may not have any zeros if there are "carries" from a product at a lower level.
What is a positive result of industrialization?
A positive result of industrialization is that products are able to be made more quickly and possibly more cheaply. When factories can create many products quickly, they are able to lower the prices to make them more affordable for everyone.
What occurs when two or more businesses secretly agree to set their prices artificially high and agree not to lower them which forces consumers to pay more than they would if no agreement existed?
price fixing
What is a value much greater or much less than the others in a data set?
A value that is significantly higher or lower than the other numbers in a set are called extremes. They are sometimes excluded from calculations like the mean (average) but sometimes they are included.
What is the meaning of 1 upper and 1 lower case 1 numeric and 1 special char?
We suspect you may be trying to create a computer password.The upper case characters are: A B C D E . . . etc.The lower case characters are: a b c d e . . . etc.The numeric characters are: 1 2 3 4 5 . . . etc.Special characters are: . , < ? > / ! # $ % & * + etc.It's telling you that the password you choose must contain at leastone character from each group.
What is labor specialization?
Specialization of labor is a powerful force in an economy, benefiting small and large businesses alike. Workers produce more when they occupy specialized roles, so businesses can offer higher quality products at lower prices.
Why do the products of multi digit numbers with zeros and one digit numbers sometimes have zeros in them and sometimes have no zeros in them?
The product may not have any zeros if there are "carries" from a product at a lower level.
What factors contribute to the consistent demand for products with inelastic demand, and how do businesses capitalize on this unique market characteristic?
Factors contributing to consistent demand for products with inelastic demand include limited substitutes, necessity, and brand loyalty. Businesses capitalize on this by setting higher prices without losing customers, maximizing profits even with lower production costs.
What effect does competition have on price and why?
Competition will lower the price of products
How businesses pollute the environment?
C. to lower production costs.
How do you remove a lower ball joint from the control arm in a 1990 Ford Thunderbird?
Hey Tina==sometimes you need a special tool to separate the ball joint. Check with your parts store as sometimes they have them for rent. Goodluck, Joe
Did consumers gain power as the industry expanded in the late 19th century?
As a result of new technology, products were being produced much faster and at a lower cost. The Transcontinental Railroad made the shipping of products faster and easier. As a result, consumers were given a variety of products to choose from and businesses competed for their business. This put consumers in a seat of power.
How will recession effect retail business?
I think it really depends on the type of retail business. Are the products being sold a prority with increasing gas a food prices? this comes down to the demographics being targeted by the specific businesses. if you have products that are generally bought by high end consumers, you will probably be better off than products consumed by the lower classes.
What is the typical result of competition between businesses?
bette quality for lower price
Why did businesses to move in the south?
Labor costs were lower because unions were weaker.
How consumers benefit from competition among businesses?
competition leads to lower prices
Why did businesses move to south?
Labor costs were lower because unions were weaker.
