Why might a firm remain in operation even if it is earning zero economic profit?
What will be an ideal response?
If a firm is earning zero economic profit, it is earning a normal rate of return. Thus, the opportunity costs of all factors of production have been covered.
Economics
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When used for production, the ________________ reflects the pareto efficient allocations of inputs to produce Goods 1 and 2
Fill in the blank(s) with the appropriate word(s).
Economics
If the growth rate of employment is positive but labor productivity remains unchanged, which of the following is likely to happen? a. Real GDP will either decrease or remain constant. b. Real GDP will decrease
c. Real GDP will remain constant. d. Real GDP will either increase or remain constant. e. Real GDP will increase.
Economics