Answer to Question #212197 in Macroeconomics for Gaveen

Question

Assume that you are an agricultural economist and you 

have been specialized in production economics as well. 

Farmers in the area complain that they run the farm 

business at a loss. Therefore, they seek your advice to make 

their production profitable and finally maximize profit. As 

you are an expertise in the area of production economics, 

how do you advise them to solve their problem? Use 

graphical illustrations when and where necessary. 

Answer 1

I would advise them to assess as they minimize the operating costs since they will be an expense, hence limiting Profit-Maximizing operation.

Similarly, it is important reviewing their product pricing and port folio. This is because it significant to familiarize the actual unit margin for every product and update the information frequently.