Both Saturn Technologies and Granite Inc. incur a cost of $200 to manufacture a single unit of a cell phone. However, Saturn Technologies charges a higher price than Granite Inc. does, but it still sells a higher number of phones. What does this imply?

Question

Business

Zoey Clements

21 April, 06:01

Both Saturn Technologies and Granite Inc. incur a cost of $200 to manufacture a single unit of a cell phone. However, Saturn Technologies charges a higher price than Granite Inc. does, but it still sells a higher number of phones. What does this imply?

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Answers (1)

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Callie Gilmore · Answer 1

Saturn technologies creates more economic value than Granite Inc. does.

Explanation:

Economic value is that value which a customer is willing to pay for a particular item. In the given situation, Saturn charges more prices than granite inc does, still saturn technologies are selling more products than Granite inc., which means that the customer is willing to pay even extra for saturn technologies product, and the reason for this can be difference in quality of both the companies, may be saturn technology's product successfully meets the customer demand etc.