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The theory of the firm under perfect competition — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsThe theory of the firm under perfect competition1 Mark
Question
Giving reasons, state whether the following statement are true or false.
A firm gets maximum profits only if difference between average revenue and average cost is the maximum.
✓

Answer

False.
Explanation:
A producer is only in equilibrium if difference between total revenue and total cost is maximum. Note: As per CBSE guidelines, no marks will be given if reason to the answer is not explained.

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