
Andrew M. answered 09/28/18
Tutor
New to Wyzant
Mathematics - Algebra a Specialty / F.I.T. Grad - B.S. w/Honors
In a simplistic manner:
Producers are the ones who actually make or produce a product for sale.
The resources are the items they will need to make the product.
They must, of necessity, look at the cost of the resources they will have to
purchase in order to make their product. If the cost of the resources is too
high, then their profit margin will be low or nonexistent.
Ideally, they wish for a low cost of resources to make a product they can sell
for a high amount of money, thus creating the largest profit margin.
The resources are the items they will need to make the product.
They must, of necessity, look at the cost of the resources they will have to
purchase in order to make their product. If the cost of the resources is too
high, then their profit margin will be low or nonexistent.
Ideally, they wish for a low cost of resources to make a product they can sell
for a high amount of money, thus creating the largest profit margin.