If a Firm's Profit Is $0, Then It Must Be

question 126

Multiple Choice

If a firm's profit is $0, then it must be true that

• A) TR equals TC.
• B) TR equals TVC.
• C) TR equals TFC.
• D) TFC is zero.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, often used in the time value of money calculations.

Compounded Annually

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a loan or deposit.

Inheritance

Wealth or attributes passed on to heirs upon the death of an individual.

Lump Sum

A lump sum is a single payment of money, as opposed to a series of payments made over time.