When a firm experiences zero-profit equilibrium,the firm's revenue must be sufficient to cover all opportunity costs.

Question

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In a zero-profit equilibrium, the firm's total revenue is equal to its total cost, including opportunity costs. This means that the firm is just breaking even and is not making a profit. Therefore, the firm's revenue must be sufficient to cover all of its costs, including opportunity costs, in order to remain in business.

When a Firm Experiences Zero-Profit Equilibrium,the Firm's Revenue Must Be