A market economy is the most efficient way of organizing economic activities. Millions of suppliers (businesses) and consumers (buyers) make up markets. Suppliers and consumers sell and buy goods that satisfy their needs. Suppliers and consumers make rational decisions, respond to incentives, and make tradeoffs. Overall, trade makes everyone better off. (Mankiw) If a company does not meet the desires of the consumer, it will lose its place in the market. Sales at most major retailers increased this quarter, while others declined. The overall sales gain amounts to 7.9%. (Chandler) Sales increased because consumers were not bothered by threats of war. Furthermore, they have confidence in the current and future stability of the economy. The reason some retailers lost and most won could be a number of possibilities: Prices could be too high for the consumer's taste. Marketing strategies appealed to consumer tastes. Consumer expectations regarding future prices and economic stability. Consumer purchases of goods from some companies have fallen. This could be due to the rising prices of products sold by retailers. Prices of goods have increased due to increased costs due to increase in average total cost. Average total cost is the total cost (everything given up to pay for a good) divided by the quantity (how many goods the company produces). This will be driven by variable cost (costs that vary depending on the amount of output produced) due to inflation; increase in wages and the cost of goods necessary for the production of the final good. As some companies increase their average total cost and do not increase their prices, they will lose profits. Profit is obtained by dividing the [Total Revenue (the amount a business receives for selling its output) by the Quantity minus the Total Cost divided by the Quantity] multiplied by the Quantity. Alternatively, profit will be equal to (price minus average total cost) times quantity. If the average total cost is greater than the price, the company will face either a price increase or a loss of profit in the short term. If a profit loss is effective with the firm's long-run average total cost, then the firm will have to cut its losses and exit the market. (Mankiw) One of the reasons most companies have done better than others is that their average total cost is lower. than the price. They will be able to make the profits necessary for the survival of the business. Another reason is that the company has a solid marketing strategy. Marketing involves collecting useful data: what the consumer wants. When the data is collected and studied, the information provided will allow the company to know what goods to produce or what type of advertising to use. Advertisers will make it appear that the company