When revenue is less than total cost but more than variable cost it implies that:
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 both its fixed and variable costs.
c
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A textbook publisher is in monopolistic competition. The firm can sell no books at $100 a book, but for each $10 cut in price, the quantity of books it can sell increases by 20 books a day
The firm's average variable cost and marginal cost is a constant $20 per book. What is the publisher's profit-maximizing level of output? A) 60 books per day B) 80 books per day C) 100 books per day D) 120 books per day
The poor are those who fall too far behind the average income. This refers to the ____ definition of poverty
a. marginal b. absolute c. relative d. threshold