Which of following is False about total cost of production C(x) and revenue R(x)
A. C(x) > R(x) then Profit occurs.
B. C(x) < R(x) then loss occurs.
C. R(x) = C(x) neither profit nor loss.
D. C(x) > R(x) then loss occurs.
E. C(x) < R(x) then Profit occurs.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → A, B only
(A) This is false, as when $C(x)>R(x)$, the company incur a loss.
(B) This is false, as when $C(x)<R(x)$, the company makes a profit.