A company over utilising its resources is incurring losses as it is producing on rising part of average cost curve. The company needs suggestion as to how can it reduce lossess? Use diagram.

A company over utilising its resources is incurring losses as it is pr

1.	A company over utilising its resources is incurring losses as it is producing on rising part of average cost curve. The company needs suggestion as to how can it reduce lossess? Use diagram.
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_XI_U03_C06_E01_052_S01.png" width="80%"/> <br/> The compoany is producing along rising average cost <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a> at `OQ_(1)`. Company is incurring losses as both marginal cost and average cost are rising. To reduce losses ot should cut down on costs by <a href="https://interviewquestions.tuteehub.com/tag/reducing-2981618" style="font-weight:bold;" target="_blank" title="Click to know more about REDUCING">REDUCING</a> production till <a href="https://interviewquestions.tuteehub.com/tag/oq-583888" style="font-weight:bold;" target="_blank" title="Click to know more about OQ">OQ</a>. The company should <a href="https://interviewquestions.tuteehub.com/tag/ensure-972238" style="font-weight:bold;" target="_blank" title="Click to know more about ENSURE">ENSURE</a> optium utilisation of scare resources at E where MC cuts AC at its minimum.</body></html>