Economics A Level: What would a Firm do if TR is Above TVC (Total Variable Costs) in the Short Run?

Question

What would a Firm do if TR is Above TVC (Total Variable Costs) in the Short Run?

go kys · Accepted Answer

-The Firm will keep on Producing in the Short Term
-The Revenue made (Gross Profit) can be used to Pay the Fixed Costs and so keep on Existing. Stopping Production makes the Firm even Worse

Economics A Level

What would a Firm do if TR is Above TVC (Total Variable Costs) in the Short Run?

-The Firm will keep on Producing in the Short Term -The Revenue made (Gross Profit) can be used to Pay the Fixed Costs and so keep on Existing. Stopping Production makes the Firm even Worse

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