Price must be greater than cost in order for the firm to generate income.

Name: Price must be greater than cost in order for the firm to generate income.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. In order for a firm to generate income, it must sell its products or services at a price that is greater than the cost of producing them. The difference between the price and the cost is the profit margin, which is the income earned by the firm.

Price Must Be Greater Than Cost in Order for the Firm