Ask Question
18 February, 05:26

A firm will make a profit when A. P = MC. B. P = ATC. C. P > AVC. D. P > ATC.

+5
Answers (1)
  1. 18 February, 08:32
    0
    Option (D) is correct.

    Explanation:

    A particular firm earns a profit when the total revenue of this firm is larger or greater than the total cost of this firm.

    Total revenue = Quantity of goods * Price of each good

    Total cost = Quantity of goods * Average total cost

    Therefore,

    Profit = Total revenue - Total cost

    The difference between the total revenue and the total cost is positive when the price of the product is greater than the average total cost.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A firm will make a profit when A. P = MC. B. P = ATC. C. P > AVC. D. P > ATC. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers