To generate higher profit margins, producers must work to a) increase their total supply.

To generate higher profit margins, producers must work to

a) increase their total supply.

b) increase their total expenses.

c) decrease their customer base.

d) decrease their production costs.

Answer:d) decrease their production costs.

Peaking the producers’ profits depends on the predicting the production costs and decreasing them many times. Profit margin is defined as the difference between the selling price of a product or service and the cost of its production. In this case, the question asks for an explanatory sentence about profit margin. Through reduction in production cost, the cost of materials, labor, overhead expenses, and operating inefficiencies businesses can keep the profit margin up or the prices can be lowered without any negative effect on profits. This approach helps companies compete and be profitable at the same time, boosting their confidence in market conditions. It can be well depicted that the cost of production must be decreased which could be achieved by using multiple ways like smoothing the processes, getting the best available deals, installation of new technologies or through optimized resource use . Therefore, producers should mainly focus on production costs reduction, maintaining the selling price and should use them as turning points to enhance their profit margins and as a means of improving profitability.