If a perfectly competitive seller is maximising profit and is making zero economic profit, which of the following will this seller do?

Question

Quizplus · Accepted Answer

When a perfectly competitive seller is making zero economic profit, it means that the revenue is just enough to cover the total costs including both variable and fixed costs. In this situation, the seller is already producing at the point where marginal cost equals marginal revenue, which is the profit maximizing level of output. Hence, the seller should continue producing at the current output level to maintain zero economic profit.

If a Perfectly Competitive Seller Is Maximising Profit and Is