Economic profits at the short-run break-even point are

Name: Economic profits at the short-run break-even point are
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Question

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At the short-run break-even point, a firm's total revenue is equal to its total costs, including both variable and fixed costs. Therefore, economic profits are equal to zero. This is because in the short-run, a firm can only adjust its variable costs and not its fixed costs. Therefore, the size of the fixed costs does not affect economic profits at the short-run break-even point.

Economic Profits at the Short-Run Break-Even Point Are