If a firm is earning negative economic profits,it implies

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If a firm is earning negative economic profits, it means that the firm's total revenue is less than its total costs, including both explicit and implicit costs. This implies that the firm is not covering all of its costs, including the opportunity cost of the owners' capital. Therefore, the firm's accounting profits must also be negative, since accounting profits are calculated by subtracting total costs from total revenue.

If a Firm Is Earning Negative Economic Profits,it Implies