In the Long Run,if a Firm Is Making a Loss,it

question 141

Multiple Choice

In the long run,if a firm is making a loss,it will

• A) continue to operate no matter what.
• B) continue to operate if it covers its fixed costs.
• C) increase production in order to increase profits.
• D) decrease production in order to increase profits.
• E) stop producing and exit the market.

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Definitions:

Wholesalers

Entities involved in the distribution process, typically selling goods in large quantities to retailers, other merchants, or industrial, commercial, and institutional users.

Principle-Based Statement

A declaration or assertion that is grounded in established principles or fundamental truths.

Code of Ethics

A set of principles and standards that guides ethical professional conduct and decision making within an organization.

Ethical Tolerances

The degree to which behavior deviating from ethical norms is accepted or allowed within a group, organization, or society.