If economic profit is equal to zero, then
A) the entrepreneur's profit as measured by accountants is also equal to zero.
B) the entrepreneur's profit as measured by accountants must be less than zero.
C) the entrepreneur is making only a normal profit.
D) The entrepreneur's profit cannot be determined based on the information given.

Question

Quizplus · Accepted Answer

Economic profit being zero means the entrepreneur is covering all costs, including opportunity costs, and is making a normal profit, which is the minimum required to keep resources in their current use.

If Economic Profit Is Equal to Zero, Then