A Firm Should Continue to Operate Even at a Loss

question 242

Multiple Choice

A firm should continue to operate even at a loss in the short run if

• A)its output is above the break-even point.
• B)its revenues are less than its fixed costs.
• C)it can cover its variable costs and some of its fixed costs.
• D)it has some fixed costs that cannot be brought down to zero.

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Definitions:

Suppressing Thoughts

The conscious effort to stop thinking about certain topics or ideas, often as a coping mechanism.

Emotional Responsiveness

The degree to which an individual responds to and expresses emotions.

Perpetrator

An individual who commits a harmful, illegal, or immoral act.

Secondary Control

A coping mechanism where individuals adjust their thoughts or emotions to deal with situations beyond their control.