If a Firm in a Price-Taker Market Is Earning Zero

question 189

Multiple Choice

If a firm in a price-taker market is earning zero economic profit, it

• A) will shut down in the long run but not the short run.
• B) will also be earning zero accounting profit.
• C) is doing as well as typical firms in other markets.
• D) will shut down in the short run.

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Definitions:

Automatic Processing

The unconscious encoding of incidental information and well-learned tasks, requiring little to no cognitive effort.

Source Amnesia

A memory disorder where an individual can recall certain information but is unable to remember where, when, or how the information was acquired.

Voicers

Individuals who express opinions, concerns, or suggestions for improvements within an organization.

Silent

Without sound; not speaking or refraining from speech.