Businesses are structured to make money. that's part of what defines success for a business. company leaders strive to generate as much profit as possible by increasing revenue while decreasing costs.

it costs the company money to provide benefits to employees, such as insurance. and yet companies often provide health and dental insurance for their employees. they also pay for insurance to employees who become injured or disabled.

given the costs associated with insurance, why do companies provide insurance plans to employees?

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?