When revenue is less than total cost but more than variable cost it implies:

Question

Quizplus · Accepted Answer

When revenue is less than total cost but more than variable cost, it means the firm is able to cover its variable cost and a part of its fixed costs. This situation is known as operating at a loss in the short run, but the firm is still able to cover some of its costs and should continue to operate as long as it believes it can cover its fixed costs in the long run.

When Revenue Is Less Than Total Cost but More Than