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

Question

Quizplus · Accepted Answer

Firms that are "breaking even" are earning zero economic profits, meaning they are covering all their costs, including the opportunity costs of capital and labor, but not earning additional profits beyond that.

Firms That Are "Breaking Even" Are