As long as TVC

Question

As long as TVC < TR, a firm will have a positive level of output in the short run.

Quizplus · Accepted Answer

This is true according to the profit-maximizing rule in the short run. The firm will continue to produce as long as the total revenue (TR) generated from selling the output is greater than the total variable cost (TVC) incurred in producing the output. However, it is important to note that this does not ensure that the firm is making a profit, as fixed costs (FC) are not taken into account in the short run.

As Long as TVC < TR, a Firm Will Have