-Refer to the above figure. Profits will be negative

Name: -Refer to the above figure. Profits will be negative
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Profits are negative when total revenue is less than total cost. This occurs when the price is below the point where the total cost curve intersects the total revenue curve, which in this case is at $2. Below this price, costs exceed revenues, leading to negative profits.

-Refer to the Above Figure