What Are the Two Options for a Firm That Is

question 87

Multiple Choice

What are the two options for a firm that is operating at a loss in the short run?

• A)To reduce output or reduce its variable costs.
• B)To go out of business or declare bankruptcy.
• C)To shut down temporarily or continue to produce.
• D)To adopt new technology or change the size of its physical plant.

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Definitions:

Board of Governors

A leading body of a central banking system, such as the Federal Reserve in the United States, responsible for overseeing the bank's policies and operations.

Appointed

A term referring to individuals who have been selected and assigned roles or positions, often within a governmental or organizational setting, without requiring an election or competitive selection process.

Elected

Refers to the process of choosing or selecting someone to hold a public office or some other position by voting.

Open-Market Operations

Purchases and sales of government securities by the Fed in an effort to influence the money supply.