When average cost is equal to average revenue of a firm, it gets _________.

CA Foundation · Business Economics · MTP · January 2026
When average cost is equal to average revenue of a firm, it gets _________.
(A) A. Sub normal profit
(B) B. Normal profit
(C) C. Abnormal profit
(D) D. Super profit

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Normal profit

Topics: Theory of Production and Cost

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