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:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, resulting in market stability.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Tax

A compulsory financial charge or other levy imposed by a government to fund public expenditures.

Demand Function

A mathematical representation showing the relationship between the quantity demanded of a good and its price, along with other factors affecting demand.