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Business
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| Number of pages / Number of words: |
3 / 615 |
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Quasar Computer realizes it needs to engage in brand development in order to compete with its competitors and to convince consumers to pay higher price for its products. At this stage, to obtain optimal profit, Quasar needs to allocate its brand development budget into the launching of the new product, the Ceres, which will use idle plant capacity and generate a higher profit margin per unit...
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In this market, there are many suppliers and many consumers. There is no non-pricing competition since consumers view these products as homogeneous and there is no product differentiation. The main focus for firms in this market when making decision to optimize their potential profits is cost reduction, not price or level of production...
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