When Economic Profits Are Zero for a Firm in a Perfectly

question 2

Multiple Choice

When economic profits are zero for a firm in a perfectly competitive market, it means that:

• A)average total costs are zero.
• B)price is equal to minimum average total cost.
• C)average variable costs are minimized.
• D)marginal revenue is equal to average variable costs.

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Definitions:

Pinus

A genus of trees in the pine family, known for having needle-like leaves and producing cones.

Conifers

A group of cone-bearing plants that are mostly evergreens and include pines, firs, and spruces.

Sepal

One of the outermost parts of a flower, usually leaflike in appearance, that protects the flower as a bud.

Flower Bud

A flower bud is a small embryonic flower, encased in protective scales, which develops into a mature flower upon growth and favorable conditions.