If a firm makes zero economic profit, then the firm
A) has no incentive to stay in the industry.
B) is better off exiting the industry.
C) is indifferent between staying and exiting the industry.
D) will shut down.
C
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Brendon is willing to pay $3,000 for a PlayStation. If the market price of the PlayStation is $2,000 . then: a. Brendon will not buy the PlayStation because the marginal utility derived from it is very low
b. Brendon will not buy the PlayStation because it is an illegal transaction. c. Brendon will buy the PlayStation because the price he is willing to pay is more than the market price. d. Brendon will buy the PlayStation because his total utility will increase.
Which of the following statements sums up the arms race?
a. The dominant strategy for each nation was to spend less on arms.
b. Each country’s dominant strategy led to an inferior outcome for the world.
c. Self-interest drove each country into a cooperative game.
d. Each country’s dominant strategy led to a safer outcome for the world.