When a firm is at its short-run break-even point

Name: When a firm is at its short-run break-even point
Brand: Quizplus
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Question

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At the short-run break-even point, the total revenue equals total costs, including both variable and fixed costs. This means that economic profits are zero. However, the firm is still earning a nominal rate of return on its investment, which is represented by the accounting profits. As long as the accounting profits are positive, the firm should continue to produce and operate in the short run.

When a Firm Is at Its Short-Run Break-Even Point