A firm can be identified as profitable if the:

Question

Quizplus · Accepted Answer

Profits occur when revenue exceeds costs, so a profitable firm will have a positive difference between its total revenue and total costs. Option A is incorrect because high total revenue and total costs do not necessarily indicate profitability. Option B is incorrect because a negative difference between revenue and costs indicates a loss, not profit. Option D is incorrect because low costs alone do not guarantee profit; revenue must also exceed costs.

A Firm Can Be Identified as Profitable If The