A firm earns a profit if
A) total revenue exceeds the total cost of production.
B) total revenue equals total fixed costs.
C) price is less than the total cost of production.
D) price equals marginal cost.

Question

Quizplus · Accepted Answer

A firm earns a profit when its total revenue exceeds the total cost of production, as this indicates that the firm is selling its goods or services for more than it costs to produce them.

A Firm Earns a Profit If