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A small business is experiencing rising sales but the cost of each additional sale is increasing more than the revenue. What problem does this indicate?

Answer and explanation

Correct answer: अलाभकारी वृद्धि

Growth is not automatically healthy. If the marginal cost of gaining and serving each additional customer exceeds the marginal revenue, sales expansion can reduce profit and consume cash. The enterprise may need to revise prices, improve efficiency, target better customers, or control acquisition costs. Rising sales alone do not guarantee profitability.

Related tags

GrowthProfitabilityIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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