Asked by Grace Gould on May 17, 2024
Verified
If a business is losing money in the short run,the owner will try to minimize
A) losses per unit of output.
B) total cost.
C) total losses.
D) output.
E) variable costs.
Minimize Losses
Strategies or measures taken to reduce the extent of financial loss or to prevent future losses.
Total Cost
Total cost is the entire expense associated with the production of a set of goods or services, including both fixed and variable costs.
Output
The total amount of goods or services produced by an individual, firm, or country over a specific period.
- Assess the environments under which organizations in a perfectly competitive market operate, considering profit maximization, loss occurrence, and the attainment of long-run equilibrium.
- Explain the relationship between marginal cost, marginal revenue, average total cost, and the firm's supply decision.
Verified Answer
NS
nikunj singlaMay 17, 2024
Final Answer :
C
Explanation :
In the short run, a business owner will aim to minimize total losses. This involves reducing the gap between total costs and total revenue to ensure the business loses the least amount of money possible while it adjusts its operations or market conditions change.
Learning Objectives
- Assess the environments under which organizations in a perfectly competitive market operate, considering profit maximization, loss occurrence, and the attainment of long-run equilibrium.
- Explain the relationship between marginal cost, marginal revenue, average total cost, and the firm's supply decision.