If a Firm Is Incurring a Loss, the Loss Is

question 175

Multiple Choice

If a firm is incurring a loss, the loss is a signal that

• A)the firm is not a monopolist.
• B)the firm has never enjoyed profits.
• C)consumers would rather have some of the resources used by the loss maker be used to produce other goods.
• D)the government has withdrawn its "protection" of the firm.

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Definitions:

Long Run

A period in economics in which all factors of production and costs are variable, allowing for full adjustment to change.

Marginal Cost

The increase in total cost that arises from an extra unit of production.

Total Revenues

Total Revenues refer to the total receipts from sales of goods or services by a company before any expenses are subtracted.

Fixed Costs

These stay the same no matter how much output changes.