If total revenue exceeds the total cost of production, a firm
A) earns a profit.
B) suffers a loss.
C) breaks even.
D) shuts down.

Name: If total revenue exceeds the total cost of production, a firm A) earns a profit. B) suffers a loss. C) breaks even. D) shuts down.
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Question

Quizplus · Accepted Answer

When total revenue exceeds the total cost of production, it means the firm is selling its goods or services for more than it costs to produce them, resulting in a profit.

If Total Revenue Exceeds the Total Cost of Production, a Firm