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:
“If you’re lucky, you have money. That’s why it’s better to be born lucky than rich. If you’re rich, you can always lose your money, but if you’re lucky, you’ll always get more money.”
—Anthony Pélissier. Explaining her philosophy of life to her son (1949)
“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)
“Behold, Esau my brother is a hairy man, and I am a smooth man.”
—Bible: Hebrew Jacob, in Genesis, 27:11.
To his mother Rebekah, explaining how the blind Isaac might discover the ploy of his pretending to be Esau. “Esau was a cunning hunter, a man of the field; and Jacob was a plain man, dwelling in tents.” (25:27)