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16 July, 02:49

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

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  1. 16 July, 03:40
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    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.
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