Question

Select all the items that describe the role of a producer. a) You want to charge a price that earns profits. b) You want to charge a price that does not cover fixed costs. c) You want to charge a price that covers variable costs. d) You want to have a large market share.

Answer 1

Answer: All except option B

Explanation: In simple words, producer refers to an individual who collects All the factors such as labor, capital and land to produce and supply a commodity with the ultimate objective of having any monetary gain.

Thus, a producer will charge a price that will cover all of his or her costs and would increase its sales and market share for increase in profits.

Thus, the correct option is B .