What Are Some Various Constraints that Firms Face in Maximizing Their Economic Profit?
1. Supply Costs
Businesses have costs for supplies used in operation or products purchased for resale. Manufacturers buy raw materials for production, and distributors and retailers buy finished goods for resale.
2. Production Processes
Companies typically have production or operational processes to prepare products and services for customers. For manufacturers, this involves converting raw materials to finished goods.
3. Market Size
Larger customer markets typically lead to opportunities for greater sales volume and more revenue.
4. Demand
Along with a sizable market, you need to generate demand from customers to achieve revenue and high price points
