Question

Generally, we could say maximizing profit amounts to minimizing cost and maximizing revenue. True or false

Answer 1

True. Because maximizing profit can be obtained either by increment in price,give that cost is fixed or by decreasing cost,given that price is fixed.But usualy price cannot be increased because if price will be increased then consumer will shift to another seller which provided same goods at lower price.so only cost can be minimised in this type of situation by which profit can be maximizing and the revenue is directly proportional to the profit as profit increases revenue will also increases.