Decreasing profit margins indicate a need to increase production in an economy.

Question

Quizplus · Accepted Answer

Decreasing profit margins can be caused by various factors such as increasing costs of production, competition, or changes in consumer demand. Increasing production without addressing the underlying causes of decreasing profit margins can actually lead to further losses. Therefore, it is important to analyze the root causes of declining profits and implement appropriate strategies to address them.

Decreasing Profit Margins Indicate a Need to Increase Production in an Economy