Homework Sourse1 If marginal cost for a firm exceeds marginal revenue it ma
1.
| If marginal cost for a firm exceeds marginal revenue, it may still be earning a profit. | |||||||
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Solution
True, If marginal cost exceeds marginal revenue, the firm may still be earning a positive accounting profit. If the firm is able to cover its average total cost the firm can still earn profit meaning price is greater than average total cost
