When Sidney's Sweaters, Inc. makes exactly zero economic profit, Sidney, the owner

Name: When Sidney's Sweaters, Inc. makes exactly zero economic profit, Sidney, the owner
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When Sidney's Sweaters, Inc. makes zero economic profit, it means that Sidney's income from the business is equal to what he could have earned in his next best alternative. This is because economic profit accounts for both explicit and implicit costs, including opportunity costs.