If the market price changes, what does this affect?

Maintaining or increasing the mass of profits depends on two main factors:
The degree of change in the volume of sales with a decrease in prices, which largely depends on the elasticity of demand;
The degree to which changes in sales volumes affect costs. This factor is determined by the cost structure, that is, the ratio of the constant and variable parts (the higher the share of variable costs, the more sales the company needs to achieve in order to maintain profit).



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