An economic profit of zero implies:

Question

Quizplus · Accepted Answer

Economic profit of zero implies that the firm is earning normal profit, which is the minimum level of profit necessary to keep the firm operating in the long run. This means that the revenue of the firm is enough to cover both its explicit costs (such as rent, wages, and materials) and implicit costs (such as the opportunity cost of the owner's time and money invested in the business). Therefore, option D, which includes all of the above, is the correct answer.

An Economic Profit of Zero Implies