A firm that generates zero economic profit usually faces
A)negative business profit.
B)zero business profit.
C)positive business profit.
D)business profit equal to half the total revenue.

Question

Quizplus · Accepted Answer

A firm generating zero economic profit means it covers all its explicit (accounting/business) and implicit (opportunity) costs. This implies it still makes a positive business profit, which is the accounting profit not accounting for the opportunity costs.

A Firm That Generates Zero Economic Profit Usually Faces