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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