Profit maximization is best described by which of the following?
A) obtaining the largest profit possible
B) having your supplier carry your inventory
C) building the lowest-cost product possible
D) selling your product at the highest price possible

Question

Quizplus · Accepted Answer

Profit maximization is the process of obtaining the largest profit possible. It involves analyzing revenue and cost data to determine the output level that will generate the highest profit. This means finding the optimal price for the product, managing production costs, and identifying the most efficient allocation of resources to maximize revenue. While minimizing costs may be a component of profit maximization, it is not the only consideration. Similarly, while selling at the highest price possible may generate higher revenue, it may not always result in the highest profit.

Profit Maximization Is Best Described by Which of the Following