23
QuizMultiple Choice

Unit 2 Test

Question 23 • (OC27) Economics-2102310-Sem-Meadows

To generate higher profits, producers must work to

Answer
i
increase their total supply.
i
increase their total expenses.
d
decrease their customer base.
d
decrease their production costs.

Explanation

Profit is the money left after a producer subtracts production costs from revenue. If revenue stays the same, lowering production costs increases the amount of profit. Increasing expenses would reduce profit, and decreasing the customer base could reduce revenue, so the best choice is to decrease production costs.

AI-written and checked against the verified answer.

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