Bang and Olufsen Economics Essay examples
Written Examination – Economics
As mentioned in the text, Bang & Olufsen A/S have to launch several new products. Give examples of fixed and variable costs by developing and selling a new product.
Fixed costs * R&D cost * Marketing cost to campaigns * Building up sales and organization
Variable cost * Production cost * Sales provision, discounts * Distribution directly related to the sales of products
Analyze and assess by using the subject's concepts ‐ why 2009 was a challenging year for Bang & Olufsen A/S.
The global financial crisis started in 2007 and from 2008 it is called financial crisis. This is considered to be the …show more content…
Explain why the supply curve rises upward from left to right.
* Because of the lack of developments the products could not represent the quality and could not exceed the expectations of customers so a shortage has been started up and the supply curve assumed to rises upward.
Explain the following event in a demand‐supply plot.
Bang & Olufsen has increased labor productivity significantly in recent years, as a result of successful application of new technology. * Successful application of new technology causes an increase in supply. * The demand curve will remain unchanged, but after a while, because of the increase in supply, the demand will decrease and therefore the price will decrease as well.
Discuss what might be causing the demand changes. 1. Increase/Decrease in quantity Demand * Increase in price causes a decrease in quantity demand * Decrease in price causes an increase in quantity