Suppose a price taker is collecting $1,250 in total revenue and the total cost of its variable factors of production is $1,000 at its current level of output.One can predict that the firm will

Question

Quizplus · Accepted Answer

The firm will continue to operate because its total revenue ($1,250) is greater than its total variable costs ($1,000), meaning it can cover its variable costs and contribute to fixed costs.

Suppose a Price Taker Is Collecting $1,250 in Total Revenue