Firms that are earning zero economic profits are
A) breaking even.
B) earning less than a normal rate of return.
C) shutting down in the short run.
D) shutting down in the long run.

Name: Firms that are earning zero economic profits are A) breaking even. B) earning less than a normal rate of return. C) shutting down in the short run. D) shutting down in the long run.
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Question

Quizplus · Accepted Answer

Zero economic profit means that a firm is covering all its costs, including opportunity costs, and is thus breaking even.

Firms That Are Earning Zero Economic Profits Are