Question

If a company wants to increase its profitability, they need to ________ sales volume, _________ prices, or __________ costs.

Answer 1

It depends on the elasticity of the products. For example, if the product is something inelastic such as necessity, the company should increase its price as the quantity demanded won't change much. Vice versa.

Answer 2

If a company wants to increase its profitability, they need to INCREASE sales volume, INCREASE prices, or DECREASE costs.