Question
Both Medical Manufacturing and R&D Health Inc. have developed advanced hearing aid technologies. R&D's hearing aids sell at $4,000 per pair, whereas Medical Manufacturing sells
Both Medical Manufacturing and R&D Health Inc. have developed advanced hearing aid technologies. R&D's hearing aids sell at $4,000 per pair, whereas Medical Manufacturing sells its hearing aids at $3,500 per pair. This price differentiation has mainly been attributed to the companies' capital decisions. While Medical Manufacturing used its retained earnings to develop its technology, R&D Health borrowed funds from banks to develop its hearing aids. Thus, R&D pays a higher interest on its capital, which makes it necessary to price its product higher. What is the advantage key driver for Medical Manufacturing's competitive ?
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
