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:
“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)
“Religion. A daughter of Hope and Fear, explaining to Ignorance the nature of the Unknowable.”
—Ambrose Bierce (1842–1914)
“We’ll build a democracy here, even if it’s with Nazi bricks.”
—Samuel Fuller, U.S. screenwriter. Samuel Fuller. Captain Harvey, Verboten! American Military Government officer explaining the practicalities of de-Nazification (1959)