Question

A firm conducted a market analysis and determined that a new worker should be hired. if the firm decided the price of the product will remain the same, what change should occur initially to maximize revenue?

Answer 1

Answer:

The changes that should occur to maximize revenue is that there should be proper and maximum utilization of assets and resources such as manpower, material, funds , properties as this will automatically translate to increased value addition for production and services.

Consequently, the maximum utilization of this assets will lead to increased production which in-turn increased sales with proper marketing and then increased revenue.

Answer 2

If the firm decided the price of the product will remain the same, the change that should occur initially to maximize revenue is that the firm should increase output.