The best that this firm in the above graph can do is

A) maximize profits.
B) break-even.
C) minimize losses.
D) make a small profit.

Question

The best that this firm in the above graph can do isA) maximize profits.B) break-even.C) minimize losses.D) make a small profit.

Shivani Sharma · Accepted Answer

Final Answer : C, Explanation :  Given the lack of specific details about the graph, the general principle in economics is that if a firm cannot achieve profitability due to market conditions, its best course of action is to minimize losses. This involves operating where total revenue at least covers variable costs, even if unable to cover total costs, which includes fixed costs. This strategy is preferable to shutting down immediately or incurring larger losses.

The best that this firm in the above graph can do is

A) maximize profits.
B) break-even.
C) minimize losses.
D) make a small profit.

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Learning Objectives

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