4 How might managers interpret the potential for their produ

4. How might managers interpret the potential for their product in a market that is, in absolute economic terms, large but, on a per capita basis, characterized by a majority of poor consumers?

Solution

The managers my restrict the supply to increase the demand, but profit might not be too much for them. So the manager my do the process of dumping, i.e. selling all the product to consumers , rather, in underdeveloped countries at whatever price is available. The managers may also give subsidies or rebates on their product, and take care so that the social costs do not rise. They may also themselves purchase the raw materials at rebate so that there is some profit. He may also export the product to rich countries for a fairer price and sell the product to poor countries at lower price

By,

Nishant Bhatt