Refer to the diagram below In this instance at the range of

Refer to the diagram below. In this instance, at the range of output represented at point b, 2 web page designs O total costs exceed total revenues. O total revenues exceed total costs. O the firm is earning profits. 0 the firm should shut-down.

Solution

Answer:

Since at Point B, the red colored line (TC) lies above its blue-colored line (TR), the TC exceeds the TR. The gap is denoted as losses.

Thus, the correct option is (a) total costs exceed total revenues.