Question

The average profit is equal to the difference between :
(a) AC and TC
(b) AC and VC
(c) AC and AR
(d) AC and TR

Answer 1

Hello ❤️

Option C is correct (AC andAR)..

Answer 2

The average profit is equal to the difference between AC and AR.

What are the benefits of AC and AR?

• The AC curve and AR curve are used to identify the profit is normal or supernormal
• When the AR curve is below the AC curve then loss occurred in the company
• When the AR curve is tangent to the AC curve at a lower point then the company earns profit
• When the AC curve is below the AR curve then supernormal profit earns by the company