If a firm is making zero profits, then which of the following must be true?

Question

Quizplus · Accepted Answer

When a firm is making zero profits, it means that its total revenue is exactly equal to its total costs. Since average total cost (ATC) is total cost divided by the quantity of output, if price (which equals average revenue in perfect competition) equals ATC, the firm is covering all its costs, including normal profit, but not making any economic profit.

If a Firm Is Making Zero Profits, Then Which of the Following