At zero economic profits, a competitive firm: is making a normal profit; its revenues are just sufficient to cover all costs of production, including opportunity costs. has an incentive to leave the industry to make higher profit elsewhere. is unable to pay its opportunity costs of production but will remain in business to minimize losses. will benefit, in the form of higher profits, by raising its prices above average cost.

At zero economic profit, a competitive firm is making a normal profit; its revenues are just…

Answered: At zero economic profits, a competitive…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

At zero economic profits, a competitive firm:

	is making a normal profit; its revenues are just sufficient to cover all costs of production, including opportunity costs.
	has an incentive to leave the industry to make higher profit elsewhere.
	is unable to pay its opportunity costs of production but will remain in business to minimize losses.
	will benefit, in the form of higher profits, by raising its prices above average cost.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions