When a Profit-Maximizing Firm in a Competitive Market Has Zero

question 218

Multiple Choice

When a profit-maximizing firm in a competitive market has zero economic profit,accounting profit

• A)is negative (accounting losses).
• B)is positive.
• C)is also zero.
• D)could be positive, negative or zero.

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Definitions:

Ethics

The moral principles of right and wrong that guide personal and organizational decision making.

Public International Law

Laws that govern interactions of nation-states

Supranational Law

International law that limits the rights of sovereign governments.

Property Rights

The rights of companies and individuals to own resources, make decisions about how to use it, and reap the returns or losses of business activities