In which of the following ways does demand influence profit?
A) It predicts how many units will be sold.
B) It directly influences the fixed cost of production.
C) It helps in reducing the variable cost of production.
D) It reduces the unit cost of production.

Question

Quizplus · Accepted Answer

Demand predicts how many units will be sold, which affects revenue and, consequently, profit. Fixed and variable costs are influenced by other factors, not directly by demand.

In Which of the Following Ways Does Demand Influence Profit