If the owner of a firm earns zero economic profit, he or she has earned total revenue equal to his or her

Question

Quizplus · Accepted Answer

When the owner of a firm earns zero economic profit, it means that they have covered both explicit and implicit costs, which are included in the calculation of economic profit. Therefore, the owner has earned total revenue equal to the sum of their explicit and implicit costs. Option D is the only choice that includes both implicit and explicit costs.

If the Owner of a Firm Earns Zero Economic Profit