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on Nov 30, 2024
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George and Dan's political consulting firm is losing money,but it is more than covering its fixed costs.What is the most accurate statement we can make about it?
A) It will stay in business in the long run.
B) It will go out of business in the long run.
C) It will shut down in the short run.
D) None of these statements are correct.
Fixed Costs
Costs that do not change with the level of output or production, such as rent, salaries, and insurance payments.
Losing Money
Losing money describes a situation where an individual or business expends more money than is received over a certain period, resulting in financial loss.
- Determine the circumstances that dictate whether a business remains operational, ceases activities, or leaves the market.
Verified Answer
CH
Learning Objectives
- Determine the circumstances that dictate whether a business remains operational, ceases activities, or leaves the market.
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