Which of the following will typically lead to making the highest profits?
A) Higher prices and higher costs
B) Lower prices and lower costs
C) Higher prices and lower costs
D) Lower prices and higher costs

Question

Quizplus · Accepted Answer

With increased quality, we have (1) increased reliability that leads to higher prices and (2) increased productivity that leads to lower costs. Higher prices in turn lead to higher profits, and lower costs in turn lead to higher profits.

Which of the Following Will Typically Lead to Making the Highest