Select all the items that describe the role of a producer.

2 answers:

4 0

Based on the options given, the most likely answer to this query are

You want to charge a price that covers variable costs.
You want to charge a price that does not cover fixed costs.

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Fiesta28 [93]3 years ago

3 0

Answer:

You want to charge a price that earns profits.

You want to charge a price that covers variable costs.

You want to have a large market share

Explanation:

According to microeconomic theory, producers are rational agents and tend to minimize costs (fixed and variable) to maximize profits. For this, the strategy of the producer will be to sell at a price that allows a good profit and that covers the production costs. In addition, the producer will try to get as much market share as possible as this will make him or her sell more units.

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