A basic condition that determines a firm's profits is:
A) the firm's costs of distribution.
B) taxes.
C) the amount of value customers place on the firm's goods.
D) government regulations.
E) variable costs

Question

Quizplus · Accepted Answer

The amount of value that customers place on a firm's goods is a key determinant of its profits, as it affects the demand and pricing for those goods. The higher the perceived value of the goods, the more customers will be willing to pay for them, thus increasing profits. The other answer choices may also have an impact on a firm's profits, but they are not as fundamental as customer value.

A Basic Condition That Determines a Firm's Profits Is