If the market price exceeds _ cost, profit will be _

If the market price exceeds _______ cost, profit will be _______

Expert Solution

If the market price exceeds AVERAGE TOTAL COST (AVERAGE COST), profit will be POSITIVE.

Profit per unit is the excess of market price (AR) over the average total cost (AC). So, if the firm wants to have a positive profit, the market price must be more than the average cost.

Hence, if the price is greater than the average cost, the profit will be positive.

Rahul Sunny answered 2 years ago

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