Explaining
The goal of a firm is to maximize profits or minimize losses. The firm can achieve this goal by following two rules. First, the firm should operate where MR = MC. Second, the firm should shutdown rather than operate if it can reduce losses by doing so.
Read more about this topic: Shutdown (economics)
Famous quotes containing the word explaining:
“As I write, there is a craze for what is called psychoanalysis, or the cure of diseases by explaining to the patient what is the matter with him: an excellent plan if you happen to know what is the matter with him, especially when the explanation is that there is nothing the matter with him.”
—George Bernard Shaw (1856–1950)
“Ezra Pound still lives in a village and his world is a kind of village and people keep explaining things when they live in a village.... I have come not to mind if certain people live in villages and some of my friends still appear to live in villages and a village can be cozy as well as intuitive but must one really keep perpetually explaining and elucidating?”
—Gertrude Stein (1874–1946)
“Myths, as compared with folk tales, are usually in a special category of seriousness: they are believed to have “really happened,” or to have some exceptional significance in explaining certain features of life, such as ritual. Again, whereas folk tales simply interchange motifs and develop variants, myths show an odd tendency to stick together and build up bigger structures. We have creation myths, fall and flood myths, metamorphose and dying-god myths.”
—Northrop Frye (1912–1991)