Competition has driven the economic profits in the dog grooming business to zero. Surya Bacha, who owns a dog grooming business, would be better off leaving the industry for another alternative.

Question

Quizplus · Accepted Answer

Economic profits being zero means that Surya Bacha is earning a normal profit, which is equivalent to the opportunity cost of her resources. This does not necessarily mean she would be better off in another industry unless she has a more profitable alternative.

Competition Has Driven the Economic Profits in the Dog Grooming