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saveliy_v [14]
3 years ago
7

To generate higher profit margins producers must work to do?

Social Studies
2 answers:
docker41 [41]3 years ago
7 0

The profit margin is the difference between the price charged for a good or service and the cost of producing it. Therefore it constitutes the profit for the producer.

<u>Two strategies can be followed to increase profit margins</u>

  • Lower average production costs: if the company is able to increase the efficiency of its production processes (for example, by introducing new organizatives techniques) it will be able to produce more units with the same amount of resources. Then the cost per unit produced decreases, and the company will earn a higher margin if continues charging the same price.
  • Product differentiation. The company introduces modifications in the product so that the perception that consumers have of it improves, and therefore consumers would be willing to pay a slighty higher price for purchasing that particular brand. If such modifications do not entail a larger increase in the cost per unit produced than the size of the price increase, then the firm will be able to increase its profit margins with this strategy.
Alex777 [14]3 years ago
4 0
Reduce the cost of the product's manufacturing costs & transportation costs?
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Explanation:

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<h3>What is active and passive voice?</h3>

In the definition of the term active voice, the subject of the verb is known to be the one that is said to be  doing the given action, but in passive voice the subject of the verb is known to be the one that it is being acted on.

To alter  a sentence to passive voice, one need to make the object the subject as well as the use of  the correct way or method of the verb 'be' with the use of the past participle of the main verb.

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2 years ago
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7 0
3 years ago
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