Nachiket posted an Question
June 09, 2020 • 21:16 pm 30 points
  • UGC NET
  • Commerce

When ar of a firm is above its ac then (a) (b) (c) (d) 20. the firm will earn supernormal profits the firm will achieve break even point the firm will earn norm

When AR of a firm is above its AC then (A) (B) (C) (D) 20. The firm will earn supernormal profits The firm will achieve break even point The firm will earn normal profits None of These

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    Ronak kumari upadhyay best-answer

    Dear student The answer is 'A' supernormal profit now I will try to explain it in the easier way. what is AC -it is the avarage cost for producing one unit. what is AR- it is revenue earned par unit or price of the product. so if there is difference is b/w AC and AR it means your cost is lesser and you are charging very high so definitely you are going to earn supernormal profit. I tried the simplest way hope it is clear to you

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