Respuesta :
Negative
If total revenue exceeds total variable cost, the firm's economic loss is less than total fixed cost. So it pays the firm to produce and incur an economic loss.
What is economic profit ?
The difference between the proceeds from the sale of a product and the prices of all inputs used, as well as any opportunity costs, is known as an economic profit or loss. Opportunity expenses and explicit costs are subtracted from earned revenues to determine economic profit. Accounting profit and economic profit are frequently examined together in analyses. The profit a corporation displays on its income statement is known as accounting profit. Accounting profit is a component of the necessary financial transparency for a corporation and gauges actual inflows versus outflows. Contrarily, economic profit is not revealed to regulators, investors, or financial institutions and is not reported on a company's financial statements either. A particular kind of "what if" study is economic profit. Businesses and individuals have a choice.
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