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Tim often comes to school wearing sandals instead of sneakers on days that he has physical education. He is getting angry with himself regarding his chronic
Forgetfulness about appropriate footwear. His teacher suggests that he treat himself
To an hour of television at home only on days when he has remembered to wear
Sneakers. Tim's teacher is suggesting that Tim use:
TR > TC
A situation where total revenue (TR) is greater than total costs (TC), indicating a company is making a profit from its operations.
Short Run
A period in which at least one of a firm's inputs is fixed, limiting its capacity to adjust its output levels.
Long Run
A period of time in which all factors of production and costs are variable, allowing firms to adjust all inputs.
Marginal Cost
The cost of producing one additional unit of a good or service.
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