In the short run, firms earning a profit will want to ________ their profits while firms suffering losses will want to ________ their losses.
A) maximize; maximize
B) maximize; minimize
C) minimize; maximize
D) minimize; minimize

Question

Quizplus · Accepted Answer

In the short run, firms earning a profit aim to maximize their profits to take full advantage of favorable market conditions. Conversely, firms experiencing losses seek to minimize those losses to sustain their operations and potentially recover.

In the Short Run, Firms Earning a Profit Will Want