When businesses earn zero economic profit,they have no incentive to stay in business.

Name: When businesses earn zero economic profit,they have no incentive to stay in business.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

While zero economic profit means that a business is not earning any additional income beyond what is required to cover all of its costs, it can still have other reasons for staying in business, such as non-monetary benefits or economies of scale.

When Businesses Earn Zero Economic Profit,they Have No Incentive to Stay