If a business decides to continue operating despite incurring fixed costs that exceed its revenue, what underlying reason might be driving this decision?

When a business has fixed costs that are higher than its revenue, it might still choose to keep operating to avoid losing even more money. One reason for this is that fixed costs, like rent or salaries, have to be paid regardless of how much money the business makes. If the business shuts down, it might still have to cover these costs without any income. For example, a restaurant that has already paid for its lease and staff may continue to operate because it believes that things will improve in the future, allowing it to make enough money to cover costs. By staying open, the business hopes to regain customers and increase revenue, eventually turning a profit.