It can be said that a firm is earning ab

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Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Non Competitive markets

Question:

It can be said that a firm is earning abnormal profits when

Options:

AR is greater than AC

TR is greater than TC

Both of above

None of above

Correct Answer:

Both of above

Explanation:

Abnormal profit means firm is earning some profits. This means TR is greater than TC or AR is greater than AC.