When the total revenue earned by a firm is less than the total cost of production the firm faces a n?A firm will shut down temporarily if the revenue it would get from producing is less than the variable costs of production. This occurs if price is less than average variable cost. 4. A firm will exit a market if the revenue it would get if it stayed in business is less than its total cost.
What is your decision when the total revenue is less than the total cost?If total revenue were less than total variable cost, the firm's economic loss would exceed total fixed cost. So the firm would shut down temporarily. Total fixed cost is the largest economic loss that the firm will incur. The firm's economic loss equals total fixed cost when price equals average variable cost.
What happens when a firm's total economic costs are less than its total revenue?Economics. When a firm's total economic costs are less than it's total revenue,It is incurring an economic loss....
What happens when total cost is higher than total revenue?If revenue was greater than expenses, the number is positive and represents a profit. If expenses were greater, then the number is negative and represents a loss.
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