When a business adopts a strategy of reducing and/or discontinuing production in response to a sustained pattern of losses, it is
A. considering opportunity costs.
B. preparing to exit operations.
C. preparing to reach its shutdown point.
D. considering capital investments.
Answer:B
When a business adopts a strategy of reducing and/or discontinuing production in response to a sustained pattern of losses, it is
A. considering opportunity costs. B. preparing to exit operations. C. preparing to reach its shutdown point. D. considering capital investments.
Explanation: 7. An _________________ is calculated by subtracting the firm’s costs from its total revenues, _______________________________ .