If the economy goes into recession the demand of food might, Ask an Expert

Economics

If the economy goes into recession, the demand of food might fall and also the price of the food will fall. The restaurant might be earning losses. In such a situation, the firm should reduce its variable cost of production by laying off workers, producing less raw materials in order to maximize profits. If the price falls below the average variable cost of production then the firm should shut its operations.

What will the end result be for the economy if that happens?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91951219

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