If total revenue is less than total costs, then
A)economic profits are positive.
B)economic profits are zero.
C)economic profits are negative.
D)a firm breaks even.
E)profits can be positive or negative, depending on other factors.

Question

Quizplus · Accepted Answer

When total revenue is less than total costs, it means the firm is not covering its costs, leading to negative economic profits.

If Total Revenue Is Less Than Total Costs, Then