Which statement is true about a firm that earns ZERO economic profit?

Question

Quizplus · Accepted Answer

Economic profit equals total revenue minus both accounting and opportunity costs. If a firm earns zero economic profit, it means that their revenue is just enough to cover their opportunity costs or the implicit cost of using the resources the firm already owns. The NPV of projects the firm considers equals zero, implying that the firm is earning a return on their capital that is just sufficient to cover their cost of capital.

Which Statement Is True About a Firm That Earns ZERO