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.
That is d. implementation
Hello there.
Why did miners in the West create groups of vigilantes?
To take control of claims from businesses.
Crops that grow in the tierra Fria are potatoes, wheat, barley, oats, corn and rye.
Answer:
Typical gerrymandering cases in the United States take the form of partisan gerrymandering, which is aimed at favoring one political party while weakening another; bipartisan gerrymandering, which is aimed at protecting incumbents by multiple political parties; and racial gerrymandering.
Explanation: