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3.3 Revenues, costs and profits

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Question 3

AeroGreens Ltd, a high-tech vertical farming startup, reported a net loss of £350,000 in its second year of operation. Despite this, the company continued to run its automated LED-lit hydroponic trays and deliver microgreens to premium local restaurants.

Explain one condition under which a loss-making firm, such as AeroGreens, might continue to operate in the short run.

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3.3 Revenues, costs and profits Questions

  1. A Level
  2. /Economics
  3. /3.3 Revenues, costs and profits