When Revenue Is Less Than Total Cost but More Than

question 13

Multiple Choice

When revenue is less than total cost but more than variable cost it implies:

• A)the firm is enjoying positive economic profits.
• B)the firm is earning normal profits.
• C)the firm can cover its variable cost and a part of its fixed costs.
• D)the firm is unable to cover its costs and should shut down.
• E)the firm is able to cover all its fixed and variable costs.

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Definitions:

Seller's Business

The overall operation, activities, and entrepreneurial endeavors associated with selling goods or services by a seller.

Place of Delivery

The agreed location where goods are to be delivered under the terms of a contract of sale.

Waived Right

A legal concept where an individual voluntarily relinquishes a known right, claim, or privilege, often through explicit declaration or by actions implying the abandonment of such right.

Late Deliveries

Instances where goods or services are provided after the expected or agreed upon delivery time, potentially causing inconvenience or breach of contract.