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ddd [48]
3 years ago
8

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

Social Studies
2 answers:
Lynna [10]3 years ago
8 0
You want to charge a price that earns a premium fit , you want to charge a price that covers variable costs
Basile [38]3 years ago
6 0

<u>The statements that describe producer roles are the following:</u>

  • 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.

Producers manufacture and sell goods and services in the product markets aiming to earn a profit from this economic activity.

Therefore, in order to earn profits, the price charged for their products has to contain a profit margin, which is the difference between the amount charged for the product and the total cost beared during its production process.

<u>The price established has to cover at least the variable costs and, afterwards, each unit sold will be contributing toward covering the fixed costs and the generation of profits. </u>

The market share is the % of an industry that is controlled by a firm or group of firms. <u>The larger the market share, the more consumers (higher fraction of the demand) that the firm is serving.</u> Hence the amount of sales will be larger and also the total profit earned.

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