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A restaurant owner just found out his pizza bistro is losing money. What is one possible explanation for this loss?

A. The costs aren't being maximized.
B. The costs and the revenue aren't both being maximized.
C. The revenue isn't being maximized.
D. The costs and the revenue aren't both being minimized.
E. The revenue isn't being minimized.



Answer :

Final answer:

The restaurant owner may be losing money because the revenue isn't being maximized, leading to losses from total costs exceeding total revenues.


Explanation:

One possible explanation for the restaurant owner's loss of money could be that the revenue isn't being maximized. When total costs exceed total revenues, the firm faces losses, indicating that revenue optimization is crucial for profitability.


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