Profit-Maximizing Strategies Essay - 275 Words

Profit-Maximizing Strategies (Essay Sample) Content: Profit-Maximizing StrategiesNameInstitutional AffiliationCourseDateResponse 1In this response, the author identified production overheads as one of the areas that can be used to increase profits. This is a valid explanation since, in a perfect competition, the consumer is adequately informed. Therefore, any strategies related to the consumer will not necessarily increase profits. In addition, the author identifies that a reduction of the cost of raw materials as one of the strategies to maximize profits. It is important for any producer to reduce the cost of raw materials. In a perfect competitive market products are almost the same. It is, therefore, important to create ways in which quality goods will be produced at a cheaper price compared to competitors. Furthermore, it is important to maximize production of goods using available labour. As the author notes, employee motivation plays a critical role in ensuring high output. Response 2In this response, the author notes that marketing is essential to maximize profits in perfectly competitive market. He adds that producers need to know their products well and market them in a perfect way that will attract consumers. Secondly, the author suggests that by knowing your product one is in a better position to competitively evolve their product. This is a valid explanation that is widely used by many competitors in the market. For instance, the mobile phone market is a perfectly competitive market dominated by Apple Inc and Samsung. These two companies continuously evolve their products to beat the competition in the series of phones suc...