A Firm That Makes Zero Economic Profits

question 10

Multiple Choice

A firm that makes zero economic profits

• A)Must eventually go bankrupt and exit the industry.
• B)Does not cover its variable costs and should shut down in the short run.
• C)Incurs an accounting loss if fixed costs are greater than variable costs.
• D)Covers all its costs,including a provision for normal profit.

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Definitions:

Activity Level

A term in developmental psychology referring to the overall energy and frequency of behaviors displayed by an individual.

Adaptability

The capacity to adjust to changing conditions or environments, demonstrating flexibility and resilience.

Slow-To-Warm-Up

A temperament where individuals are hesitant in new situations but become more comfortable over time.

Temperament

An individual's innate disposition or personality, often observable from early childhood and influencing behavior and emotional reactions.