If a Firm Is Earning a Profit, Then

question 81

Multiple Choice

If a firm is earning a profit, then:

• A)the average total cost must be higher than the market price.
• B)total revenue must be higher than total cost.
• C)the average total cost must be higher than average revenue.
• D)marginal revenue is equal to marginal cost.

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Definitions:

Task Expertise

The specific skills, knowledge, and experience required to effectively perform a particular job or task.

Framing Error

Trying to solve a problem in the context in which it is perceived.

Positive Or Negative Context

Describes the environment or backdrop that either supports a positive outcome, fostering growth and success, or contributes to negative results, leading to challenges and failures.

Design Thinking

Thinking that unlocks creativity in decision-making through a process of experiencing, ideation, and prototyping.