When Total Revenue Minus Total Economic Cost Is Equal to Zero

question 172

Multiple Choice

When total revenue minus total economic cost is equal to zero, the firm is

• A) earning above-average economic profit.
• B) earning the normal profit rate.
• C) losing too much money to stay in business.
• D) earning abnormally low profits.

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Definitions:

Cigarette Smoking

The act of inhaling and exhaling the smoke of tobacco or a similar substance, which is often rolled into a small paper cylinder.

Instinctual

Instinctual refers to behaviors and responses that are innate or inherent to an organism, not learned through experience.

Auditory Communication

refers to the exchange of information through verbal language and sounds that can be heard.

Linguistic Relativity Hypothesis

The concept that the structure of a language influences its speakers' world view or cognition, and thus people's perceptions are relative to their spoken language.