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.

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Definitions:

Counterfeit Prescription Drugs

Illegally produced medications that are made to look like genuine branded drugs but may contain incorrect or harmful ingredients.

Net Profits

The remaining amount of income left after all expenses, taxes, and costs have been subtracted from total revenue.

Trademark Registration

The process of registering a trademark with the appropriate government authority to ensure legal exclusivity and protection of the mark for the owner.

Federal Law

Legislation enacted by the national government of a country that applies to all citizens and entities within its jurisdiction.