At the short-run break-even point, the firm is
A) earning zero accounting profit.
B) losing money.
C) earning zero economic profit.
D) ready to shutdown.
Answer: C
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The type of unemployment that arises from a decrease in real GDP is called
A) frictional unemployment. B) structural unemployment. C) downturn unemployment. D) non-expansion unemployment. E) cyclical unemployment.
What do you mean by the term 'equilibrium wage'? a. It is the wage that is determined when potential employers and potential employees are free to transact as they wish. b. It is a wage determined by the government with an intention to narrow the gap between the higher and the lower income groups. c. It is a wage at which the workers refuse to offer labor
d. It is a minimum possible rate that an employer must pay in order to hire a labor. e. It is a wage at which there is an excess supply of workers.