When the average across all sellers in a market is zero economic profit, the profit level of each seller:
A)will be zero economic profit.
B)may vary some across the sellers, with some earning profits and others experiencing losses.
C)may vary across sellers, with some earning profits but none suffering losses.
D)may vary across sellers, with some earning zero profits or losses but none earning profits.

Question

Quizplus · Accepted Answer

When the average economic profit is zero, it means that there are no excess profits in the market. However, some sellers may still earn profits due to factors such as superior efficiency or product differentiation, while others may experience losses due to inefficiencies or other factors. Therefore, the profit level of each seller may vary somewhat across the sellers.

When the Average Across All Sellers in a Market Is