If a firm's total cost, including opportunity costs, equals total revenue, then economic profit

Name: If a firm's total cost, including opportunity costs, equals total revenue, then economic profit
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Question

Quizplus · Accepted Answer

When total revenue equals total cost, including opportunity costs, there is no economic profit being earned. This means that the firm is earning only the normal profit, which is the minimum level of profit required to keep the firm in business. Therefore, economic profit is zero.

If a Firm's Total Cost, Including Opportunity Costs, Equals Total