If a firm's economic profit is $0, then it must be true that
A) TR equals TC.
B) TR equals TVC.
C) TR equals TFC.
D) TFC is zero.

Name: If a firm's economic profit is $0, then it must be true that A) TR equals TC. B) TR equals TVC. C) TR equals TFC. D) TFC is zero.
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Question

Quizplus · Accepted Answer

Economic profit equals zero when total revenue (TR) equals total cost (TC), indicating that the firm is covering all its costs, including opportunity costs, and earning a normal profit.

If a Firm's Economic Profit Is $0, Then It Must