A basic condition to be met in order to make profits is .

P = AVC

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P > AVC

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P < ATC

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P < MC

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Solution

The correct option is B P > AVC
If P > AVC, then the firm will make positive profits.

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Similar questions

M R > M C

M R = M C

A B C, P

A B

∠ A C P = ∠ A B C .

A C = 9 c m, C P = 12 c m,

B C = 15 c m;

A B

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