If a purely competitive firm is just breaking even, its owner is:
A) earning no profit.
B) earning no normal profit.
C) earning no economic profit.
D) going out of business.

Question

Quizplus · Accepted Answer

In a purely competitive market, when a firm is just breaking even, it means it is covering all its costs, including opportunity costs, but not making any additional economic profit. This is referred to as earning no economic profit.

If a Purely Competitive Firm Is Just Breaking Even, Its