If a Firm Sells Its Output at a Price Greater

question 62

True/False

If a firm sells its output at a price greater than AC, it will earn economic profit.

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Definitions:

Utility-maximizing

Refers to the economic principle where individuals or households attempt to get the highest level of satisfaction from their resources.

Income

The money received, especially on a regular basis, for work or through investments.

Marginal Utility

The increased enjoyment or value one gets from the consumption of an extra unit of a good or service.

Marginal Utility

The added satisfaction or usefulness obtained from using one more unit of a product or service.