Question:medium
A firm's long-run decision to enter in or exit from a market depends upon the firm's ability to manage total revenue (TR), total cost (TC), quantity produced (Q), average total cost (ATC) and price of the goods (P). Which among the following is best suited for an entrepreneur interested to enter in a market?
A firm's long-run decision to enter in or exit from a market depends upon the firm's ability to manage total revenue (TR), total cost (TC), quantity produced (Q), average total cost (ATC) and price of the goods (P). Which among the following is best suited for an entrepreneur interested to enter in a market?
Show Hint
A firm will enter a market when P > ATC, ensuring profitability
Updated On: Feb 11, 2026
- TR < TC
- TR/Q < TC/Q
- P > ATC
- P < ATC
Show Solution
The Correct Option is C
Solution and Explanation
Market entry is advisable when price exceeds average total cost (P>ATC), ensuring cost coverage and profitability.
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