When AC is more than AR, what is the firm doing?
A)Making supernormal profit
B)Incurring loss
C)Having breakeven point
D)Minimising losses

Name: When AC is more than AR, what is the firm doing? A)Making supernormal profit B)Incurring loss C)Having breakeven point D)Minimising losses
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Question

Quizplus · Accepted Answer

When Average Cost (AC) is more than Average Revenue (AR), it means that the cost of producing each unit is higher than the revenue generated from selling each unit, leading to a loss for the firm.

When AC Is More Than AR, What Is the Firm