If a business is losing money on the goods it is producing, this indicates that

A. the business is producing the goods at the lowest possible cost.

B. the resources used to produce the goods are too expensive and need to be subsidized in order to be used productively.

C. the resources would be used more productively producing other things.

D. the consumer values the goods highly relative to costs

Question

Business

Aurora Simpson

1 October, 02:54

If a business is losing money on the goods it is producing, this indicates that

A. the business is producing the goods at the lowest possible cost.

B. the resources used to produce the goods are too expensive and need to be subsidized in order to be used productively.

C. the resources would be used more productively producing other things.

D. the consumer values the goods highly relative to costs

+3

Answers (1)

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Helen Flowers · Answer 1

Answer: If a business is losing money on the goods it is producing, this indicates that the resources used to produce the goods are too expensive and need to be subsidized in order to be used productively.

Explanation: To earn money, a business must have costs under revenues if not will loose money. It has to spend less to earn money trying to lower cost working on cheaper materials, cheaper workmonship o reducing fixed costs suchs as rent.