Final answer:
The business should choose the LIFO method to maximize gross profit in an economy with declining costs.
Step-by-step explanation:
In order to maximize its gross profit in an economy with declining costs, a business should choose the LIFO (Last-In, First-Out) method. LIFO assumes that the most recent inventory purchased is sold first. This is beneficial in a declining cost environment because it results in higher cost of goods sold (COGS) and lower ending inventory value, which in turn increases gross profit.
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