What Is the Term Used to Describe a Market Condition

question 25

Multiple Choice

What is the term used to describe a market condition where buyers are able to satisfy the demand of the consumer,yet have some product remain unsold?

• A) Surplus
• B) Stoppage
• C) Shortage
• D) Demand deficit
• E) Equilibrium price

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Definitions:

Maximize Profits

The goal of increasing the difference between revenue and expenses to the highest possible level.

Minimize Losses

a strategy or approach aimed at reducing the amount of financial or production losses to the lowest possible level.

Losses

Negative financial outcomes resulting from the cost of operations exceeding revenue or from other financial transactions.

Shut Down

A short-run decision by a firm to cease production due to unfavorable market conditions, not covering variable costs.