If a firm in a competitive industry is making zero economic profit but still producing, it must be the case that:

Name: If a firm in a competitive industry is making zero economic profit but still producing, it must be the case that:
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Question

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In a competitive industry, a firm making zero economic profit means that its total revenue equals its total costs, including opportunity costs. This occurs when marginal cost (MC) equals marginal revenue (MR) and also equals average total cost (ATC), hence MC = MR = ATC.

If a Firm in a Competitive Industry Is Making Zero