When a Firm Is at Its Short-Run Break-Even Point

question 16

Multiple Choice

When a firm is at its short-run break-even point

• A) economic profits are positive.
• B) economic profits equal zero and the firm should shut down.
• C) economic profits equal zero and the firm is earning a nominal rate of return on investment.
• D) economic profits are negative but the firm should continue to produce because accounting profits are positive.

---

Definitions:

Teleological View

A philosophical perspective that interprets phenomena in terms of the purpose or goal they serve rather than the cause by which they arise.

World

The totality of entities, the whole of reality, or a particular realm of human experience or observation.

Metaphysical Viewpoint

A perspective that deals with questions of existence, reality, and the nature of the universe beyond the physical or empirical.

Philosophers

Thinkers who engage in critical study, analysis, and the synthesis of ideas about fundamental questions like existence, knowledge, values, reason, mind, and language.