If economic profits are zero, then the entrepreneur can go elsewhere and do better.

Question

Quizplus · Accepted Answer

If economic profits are zero, it means the entrepreneur is earning just enough to cover their costs and receive a normal rate of return. They are not necessarily losing money, but they are also not making extra profits. In this situation, the entrepreneur may still choose to continue operating their business rather than seeking opportunities elsewhere, as they may have other objectives besides maximizing profits such as personal satisfaction or contributing to the community.

If Economic Profits Are Zero, Then the Entrepreneur Can Go