If a firm is unable to cover the cost of the resources employed by the firm (including the opportunity cost of resources owned by the firm) the firm will?

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1149692

2026-07-22 20:05

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If a firm is unable to cover the cost of the resources employed, including the opportunity cost, it will likely incur losses and may ultimately have to exit the market. This situation indicates that the firm is not generating sufficient revenue to justify its operations. In the long run, if this condition persists, the firm will either need to improve its efficiency, increase its pricing, or find a more profitable use for its resources.

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