In economics, it is generally assumed that if a firm cannot earn a profit then it should:

Question

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When a firm cannot earn a profit, the general economic principle is to minimize loss. This involves reducing costs as much as possible while still operating, in order to lessen the financial impact of not making a profit. Maximizing sales, maximizing utility, and minimizing revenue do not directly address the issue of operating without profit in a way that minimizes financial damage.

In Economics, It Is Generally Assumed That If a Firm