4
lesson pretestMultiple Choice

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Question 4 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

To generate higher profits, producers must work to

Answer
A
increase their total supply.
B
decrease their customer base.
C
increase their total expenses.
D
decrease their production costs.

Explanation

Profit is the money producers earn from sales minus their expenses. By decreasing production costs, producers can reduce expenses and keep more of their revenue as profit. Increasing total expenses would lower profit, while increasing supply or decreasing the customer base does not necessarily increase it.

AI-written and checked against the verified answer.

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