Does markerting overprice goods?

A question from Yahoo! Answers:

Does Markerting over price goods?

Many people hold that marketing is expensive and causes products to be overpriced. Do u agree or disagree with the statement

It depends. Marketing definitely costs money. Good marketing, however, makes it possible to sell (and thus produce) in large quantities, taking full advantage of economies of scale. The combined effect of marketing costs and economies of scale on the cost and price of the finished good could be either upward or downward…

This entry was posted in Answers, Economics. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *