It pays the firm to produce only if total variable costs exceed total revenue.

Name: It pays the firm to produce only if total variable costs exceed total revenue.
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Question

Quizplus · Accepted Answer

This statement is incorrect. The firm should produce only if total revenue exceeds total variable costs in order to make a profit. If total variable costs exceed total revenue, the firm would be making a loss and it would not be financially beneficial to continue production.

It Pays the Firm to Produce Only If Total Variable