Which of the following is an obstacle to economic development?

How can a firm have a negative valued added, as supposedly some state-owned businesses did in the former Soviet Union? What has to be true for value added to be negative?

What will be an ideal response?

In the short run, a firm attempting to minimize losses:

a. must leave the industry in order to maximize opportunity costs. b. will produce as long as marginal cost equals marginal revenue. c. will produce as long as total revenue exceeds total variable cost. d. will produce as long as total revenue exceeds total fixed cost. e. will produce as long as competitors continue to produce.