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:
“Well build a democracy here, even if its with Nazi bricks.”
—Samuel Fuller, U.S. screenwriter. Samuel Fuller. Captain Harvey, Verboten! American Military Government officer explaining the practicalities of de-Nazification (1959)
“... does it seem to you that it is possible to speak of Art? It would be the same as explaining love!”
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—Anthony PĂ©lissier. Explaining her philosophy of life to her son (1949)