Question

2. Why is cost-minimization analysis most likely to be useful for managers? ( NO PLAGIARISM PLEASE , 200 WORDS ESSAY )

Answer 1

Today we live in a competitive world and in today's time every firm or corporate owner want maintain their profits. But in today's time we cannot maintain profit by reducing the quality of goods and services which we provided because the customer or client find some lacuna in quality, then it will switch to another substitute goods. Now, the question arises how should firm and corporate owner maintain profit with reducing the quality of goods. Then here we think about the cost minimization. The cost minimization is a method by which a producer determine what mixture of labour and capital use to produce higher output at the lowest cost. In other words, the cost effective method of delivering goods and services and maintaining level of quality. Hence we can aay that cost minimization is best way for any firm to maintain profit without compramising quality of goods and services. Finally we can say that cost minimization is likely to be useful for managers, because every firm manager wants to show profit and higher sale at the end of the year. This is not only good for the manager but also for the future of firm, wage workers and customer who are connected with the given firm.