A firm that makes zero economic profitsa does not cover its, Ask an Expert

Economics

A firm that makes zero economic profits

a. Does not cover its variable costs and should shut down in the short run.

b. Covers all its costs, including a provision for normal profit.

c. Incurs an accounting loss if fixed costs are greater than variable costs.

d. Must eventually go bankrupt and exit the industry.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91928865

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