If a company is earning a rate of return less than the return necessary for the business to continue operations in the long run, then
A) total revenue exceeds total costs.
B) total costs are less than a normal rate of return.
C) the firm's normal rate of return is zero.
D) the firm is suffering an economic loss.

Question

Quizplus · Accepted Answer

If a company is earning a rate of return less than the return necessary for the business to continue operations in the long run, it means that the company is not covering its opportunity costs, which is an indication of an economic loss.

If a Company Is Earning a Rate of Return Less