Economic losses are a signal to producers

Name: Economic losses are a signal to producers
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Economic losses indicate that the resources are not being utilized in the most efficient way and hence the producers need to alter their production techniques or products to reduce the losses and increase profitability. It also indicates that the consumer demand is not being fully satisfied and hence the producers need to improve their product or delivery mechanisms. Therefore, option B is the correct answer.

Economic Losses Are a Signal to Producers