Respond to below in 150 words Profit MaximizationA manager may contribute to the profit maximization goal of a firm by having a strong background or education in managerial economics. By understandin

Respond to below in 150 words

 Profit Maximization

1. A manager may contribute to the profit maximization goal of a firm by having a strong background or education in managerial economics. By understanding some of the key economic factors, a manager may be able to understand and predict to some degree what may happen in multiple possible economic scenarios in the future due to looking at past trends and forecasts. In order to maximize profit, the manager must understand the price elasticity and demand elasticity of the target market. By understanding how much these people are willing to pay for a product and the quality of product they expect to receive, the manager can begin to search for suppliers that can meet this goal in the most cost-effective and consistent way. After this is done, the manager can position the product and service along the supply and demand curve in order to find the best point of price and quantity which maximizes profit for the business while also taking into consideration the needs of the market, the price that they are willing to pay, and other competitors.