If total revenue is greater than the operating costs should a firm remain open or close?
Total revenue is the total sum of money collected by a firm (positive cash coming in). Operating costs are the amount of money it costs to run the firm (negative cash being paid out). If you are making more than you are paying out it definitely makes sense to stay in business. If you are spending more to operate the firm than you are profitting than it's time to close up!
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