If a firm is earning a positive economic profit,it means that it:

Question

Quizplus · Accepted Answer

A positive economic profit means that the firm's revenues exceed its costs, indicating that it is using its resources in the most profitable way. This does not necessarily mean that the firm should invest in other opportunities, as it may be maximizing its profit in its current business. The opportunity cost may be larger than the current profit, but this does not change the fact that the firm is earning a positive profit.

If a Firm Is Earning a Positive Economic Profit,it Means