-In a perfectly competitive industry,when a firm is producing so that its total revenue equals its total cost,the firm is
A) making an economic profit.
B) incurring an economic loss.
C) making zero economic profit.
D) definitely not maximizing its profit.
E) None of the above answers is correct because the relationship between total revenue and total cost has nothing to do with the firm's profit or loss.

Question

-In a perfectly competitive industry,when a firm is producing so that its total revenue equals its total cost,the firm is
A) making an economic profit. 
B) incurring an economic loss. 
C) making zero economic profit. 
D) definitely not maximizing its profit. 
E) None of the above answers is correct because the relationship between total revenue and total cost has nothing to do with the firm's profit or loss.

Quizplus · Accepted Answer

When a firm's total revenue equals its total cost, it is making zero economic profit, as economic profit is calculated by subtracting total cost from total revenue.

-In a Perfectly Competitive Industry,when a Firm Is Producing So