ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increase their total supply.
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increase their total expenses.
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decrease their customer base.
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decrease their production costs.
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Detailed explanation-1: -The option (d) is correct. In order to generate higher profit margins, producers must work to decrease their production cost. Further Explanation: Profit Margin is a measure of the profitability of the company.
Detailed explanation-2: -There are four key areas that can help drive profitability. These are reducing costs, increasing turnover, increasing productivity, and increasing efficiency. You can also expand into new market sectors, or develop new products or services.
Detailed explanation-3: -Profit is the total amount producers earn after subtracting the production costs. Revenue is the total amount producers earn after subtracting the production costs.
Detailed explanation-4: -Normal profit is defined as the minimum return that the producer expects from the capital invested in the business. If this minimum return is not available, he will withdraw his capital from the existing use and shift it to the next best alternative use. Therefore, normal profit is a part of total cost.
Detailed explanation-5: -Production costs are expenses, such as materials and labor that your company incurs in the course of producing the product that you sell to consumers. In general, the lower your production cost, the higher your profit, or the amount you have leftover after you subtract your expenses from your sales revenue.