When the revenue for a business is less than its costs, it is making a profit.

TRUE/FALSE

Answer: false

Explanation:

A firm is making profit when total revenue is greater than total cost.

A firm is making a loss when total revenue is less than total cost.

Profit or loss can either be accounting or economic.

Accounting profit or loss = Total revenue - Explicit cost

Economic profit or loss = Accounting profit or loss - implicit cost.