MGTA05H3 Study Guide - Midterm Guide: Spacex, Tim Hortons, Monopolistic Competition
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MGTA05H3 Full Course Notes
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Document Summary
What is a business and product life cycle. Formula of profit: profit = revenue expenses. Expenses: suppliers, employees, government taxes, utilities, property, distributors, marketers. Fixed costs: costs that are independent of output (i. e. rent, buildings, machinery, etc. ) Variable costs: costs that vary with output; increase at constant rate; relative to labor + capital (i. e. production supplies, wages) Control of costs but not in control of revenue. Higher profits need to cut costs: to cut costs: buy less, pay less or buy cheap (whole sales, bulk) Product: product is what purchases hopes to get or believes to be getting, when they purchase a good or service, a good or service that fills buyer"s need or satisfies a want. Products have 3 attributes: function - does what its supposed to do, benefits - known intangible or enhanced benefits in the textbook, status, image, pleasure, features. Together these three attributes form "the value package.
