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 influences profit by predicting how many units will be sold. If demand is high, the company can produce and sell more units, resulting in higher revenue and profit. Conversely, if demand is low, the company may have to reduce production or lower prices, leading to lower revenue and profit. Demand also affects pricing decisions, which in turn affect profit.

Which of the Following Ways Does Demand Influence Profit