Answer:
Option (D) is correct.
Explanation:
A particular firm earns a profit when the total revenue of this firm is larger or greater than the total cost of this firm.
Total revenue = Quantity of goods × Price of each good
Total cost = Quantity of goods × Average total cost
Therefore,
Profit = Total revenue - Total cost
The difference between the total revenue and the total cost is positive when the price of the product is greater than the average total cost.
