Final answer:
A beverage manufacturer typically has a high profit margin because of brand recognition and economies of scale. Other businesses, such as grocery stores, car leasing, and bakeries, may have lower profit margins due to their operational costs and competitive markets.
Step-by-step explanation:
Among the options given, a beverage manufacturer is an example of a business with a high profit margin. Businesses strive to increase their profit margins, and they can achieve higher profits when their total revenue is significantly above their total cost. Beverage manufacturers often benefit from brand recognition, pricing power, and economies of scale which can contribute to higher profit margins. On the other hand, grocery stores typically operate with low profit margins due to intense competition and the perishable nature of their goods, making profits more challenging. Similarly, car leasing and bakeries may not always experience high profit margins due to various operational costs.
The profit of a business is calculated as Profit = Total Revenue - Total Cost. The goal for any business is to maximize this equation, ensuring that the revenue far outweighs the cost. To identify the profit-maximizing level of output, businesses can utilize the marginal approach, which examines the additional revenue and cost brought about by producing one more unit of a good or service.