If Total Revenue Exceeds Fixed Cost, a Firm

question 143

Multiple Choice

If total revenue exceeds fixed cost, a firm

• A)should produce in the short run.
• B)has covered its variable cost.
• C)is making short-run profits.
• D)may or may not produce in the short run, depending on whether total revenue covers variable cost.

---

Definitions:

Reasoning

The process of thinking about something in a logical way in order to form a conclusion or judgment.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and resulting in significant geopolitical changes and the establishment of the United Nations.

Major Historical Event

A significant occurrence or happening that has had a profound impact on societies or civilizations throughout history.

Cold War

The period of geopolitical tension between the Soviet Union and the United States and their respective allies after World War II, characterized by political and military rivalry rather than direct warfare.