Which of the following statements is typically not true about profit?
A) Products and services requiring highly technical personnel usually require higher profit
B) Coercing suppliers to lower prices always results in higher profit
C) Temporary, unfavorable supply-demand factors may force a firm to sell its products at a loss - resulting in no profit
D) A firm that incurs the risk of manufacturing to its own design is entitled to higher profit than one that does not
E) In general, supplier profit should not be based on a fixed percentage of the supplier's cost

Question

Quizplus · Accepted Answer

Coercing suppliers to lower prices may result in lower quality inputs or strained supplier relationships, which can eventually harm the profitability of the firm. Therefore, it does not always result in higher profit.

Which of the Following Statements Is Typically Not True About