F584: Profits

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  • Created by: Natan21
  • Created on: 14-07-15 10:30

Normal profit

Sufficient return to keep the firm operating.

TR=TC

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Supernatural profit

More than enough profit to sustain the firm in operation.

TR>TC

2 of 6

Marginal profit

Only when MR = MC, will total profits be maximised.

3 of 6

Short run

Operate as long as total revenue is greater than variable cost.

TR>VC

4 of 6

Long run

Operate as long as total revenue is greater than total cost.

TR>TC

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Loss

When total revenue is lower than total costs

TR<TC

6 of 6

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