Answer to Question #89695 in Economics for Giselle

Question

What are some uncertainties for variables for profit

Answer 1

Profitability is ultimately determined by the market price that a business can charge compared to the supply-cost per unit. Some costs are under the control of businesses e.g. labour costs but many costs are influenced by external factors e.g. changes in the minimum wage, volatile world commodity prices, changes in government regulations, strikes, political events, changes in a country's exchange rate etc., which are not under control and their probability should be evaluated.

Source:

https://www.tutor2u.net/economics/reference/strategies-for-improving-business-profitability