x* is the equilibrium: π(x ∗) = Px ∗ −SRTC(x ∗) ≥ −TFC. ⇒ Px ∗ −(TFC + TVC(x ∗)) ≥ −TFC. Px ∗ −TVC(x ∗) ≥ 0 revenue enough to cover TVC.
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