How can producers maximize their profit? Check all that apply.

1) They can work to increase their marginal cost.

2) They can work to decrease their marginal cost.

3) They can raise prices to increase marginal revenue.

4) The can lower prices to decrease marginal revenue.

5) They can keep marginal costs below marginal revenues.

6) They can keep marginal revenues below marginal costs.

Question

Business

Lane Poole

27 September, 20:17

How can producers maximize their profit? Check all that apply.

1) They can work to increase their marginal cost.

2) They can work to decrease their marginal cost.

3) They can raise prices to increase marginal revenue.

4) The can lower prices to decrease marginal revenue.

5) They can keep marginal costs below marginal revenues.

6) They can keep marginal revenues below marginal costs.

+2

Answers (2)

Know the Answer?

Jamarcus Gonzalez · Answer 1

They can keep marginal costs below marginal revenues.

Brynn Maxwell · Answer 2

How can producers maximize their profit? Check all that apply.

2) They can work to decrease their marginal cost.

3) They can raise prices to increase marginal revenue.

5) They can keep marginal costs below marginal revenues.

Maximizing profit refers to being able to profit the most from their good or service. To maximize your profit, making sure all marginal costs are as low as they can be and under marginal revenue is necessary. If the costs are higher than the revenue, there is no profit being made. The price may also need to be increased so that there is a larger increase of profit.