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3 This gives her the advantage : × instructure.com/courses/26817/quizzes/120463/take D Question 43 1 pts In the long run, if a firm is making a loss, it will continue to operate no matter what. continue to operate if it covers its fixed costs Oincrease production in order to increase profits. decrease production in order to increase profits stop producing and exit the market. D Question 44 1 pts A restaurant owner just found out that his pizza bistro is losing money. What is one possible explanation for this loss? O The revenue isn't being maximized. O The costs aren't being maximized. The revenue isn't being minimized. The costs and the revenue aren't both being maximized. O The costs and the revenue aren't both being minimized

Explanation / Answer

In the long run, firms prefer to exit and not continuing with the production.

OPTION E

PROFIT = revenue - cost

Firms always strive to maximize the gap by maximizing revenues and minimising cost

Restaurant losing money would mean profits are less and that happens when either revenues are not maximised or costs are not minimised.

OPTION A

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