In the short run, a firm that is operating at a loss has two options. These options are
A) to go out of business or declare bankruptcy.
B) to reduce output or reduce its variable costs.
C) to shut down temporarily or continue to produce.
D) to adopt new technology or change the size of its physical plant.
C
You might also like to view...
Matt has decided to purchase his textbooks for the semester. His options are to purchase the books online with next day delivery at a cost of $175, or to drive to campus tomorrow to buy the books at the university bookstore at a cost of $170. Last week he drove to campus to buy a concert ticket because they offered 25 percent off the regular price of $16.The benefit to Matt of driving to campus to buy the concert ticket last week was:
A. $9 B. $16 C. $2 D. $4
The concept of government as redistributor is
A. approved by many but questioned by many as well. B. generally rejected as against “the American way.” C. largely approved by a vast majority of Americans. D. unnecessary in the United States because income disparities are small. E. a conservative idea that many liberals reject.
An incentive system is a
A) method of organizing production that uses a market-like mechanism inside the firm. B) method of organizing production that uses a managerial hierarchy. C) set of rules that induce an agent to act in the best interest of a principal. D) method of production that implements an assembly-line process.
All of the following are reasons why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services except
A) contracts make prices and wages sticky. B) unions are successful in pushing up wages. C) menu costs make some prices sticky. D) firms are often slow to adjust wages.