If ________, a firm would operate in the short run and expand in the long run.

A) TR > TC
B) TC > TR
C) ATC > AVC
D) AVC > AFC

TR > TC

A situation where total revenue (TR) is greater than total costs (TC), indicating a company is making a profit from its operations.

Short Run

A period in which at least one of a firm's inputs is fixed, limiting its capacity to adjust its output levels.

Long Run

A period of time in which all factors of production and costs are variable, allowing firms to adjust all inputs.