If a firm is earning a profit,then:

Question

Quizplus · Accepted Answer

If a firm is earning a profit, it means that it is generating more revenue than it is spending on producing its goods or services. Therefore, total revenue must be higher than total cost. Option B is not true because if the ATC were higher than the market price, the firm would be making a loss instead of a profit. Option C is also not true because if the ATC were higher than AR, the firm would not be able to cover its overall costs and would be making a loss.

If a Firm Is Earning a Profit,then