Question

Can a firm increase its unit share at the same time its dollar share decreases? if so, how?

A. Yes, by lowering prices to increase sales volume
B. No, it is not possible
C. Yes, by focusing on premium products with higher profit margins
D. Yes, by expanding into new markets with lower-priced products

Answer 1

Yes, a firm can increase its unit share while its dollar share decreases by expanding into new markets with lower-priced products.

Step-by-step explanation:

Yes, a firm can increase its unit share while its dollar share decreases. This can be achieved through option D, by expanding into new markets with lower-priced products. By entering new markets with lower-priced products, the firm can attract a larger number of customers and increase its unit share, even though the dollar share may decrease due to the lower prices.