VARIANCE

1. Mix variances are relevant when customers buy one car instead of another car - i.e. the products are substitutable. People are less likely to by a van instead of a car. 4. I specifically mention this in my lectures and I do suggest that you watch them. Buying more units of one car automatically means buying fewer of another. 2. If they are more efficient they will produce more, and bigger volumes result in bigger revenues and profits.

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