When an Economist States That a Firm Is Earning Zero

question 151

Multiple Choice

When an economist states that a firm is earning zero economic profit, this statement implies that the firm

• A) will be forced out of business unless market conditions change.
• B) is doing as well as it could in any other line of business.
• C) is earning a zero rate of return on its assets.
• D) could earn a higher rate of return in other industries.

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Definitions:

Medical Practice

A business operated by one or more healthcare professionals to provide medical services to patients.

Employees' Contracts

Legal agreements between employers and employees detailing the terms of employment, including duties, duration, compensation, and grounds for termination.

Occupational Safety

Measures and procedures implemented to ensure the safety and health of employees in the workplace, aiming to prevent workplace accidents, injuries, and diseases.

Environmental Monitoring

The systematic collection of data regarding the natural environment and wildlife, often used to assess the health of the environment or to ensure compliance with environmental regulations.