If a Firm Makes Zero Economic Profit,then the Firm

question 27

Multiple Choice

If a firm makes zero economic profit,then the firm

• A) has total revenues greater than its economic costs.
• B) must shut down.
• C) can be earning positive business profit.
• D) must have no fixed costs.

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Definitions:

Pricing Power

The ability of a company or sector to dictate the price of its goods or services in the market.

Talent

Natural ability or skill possessed by individuals, often refined through practice and training.

ATMs

Automated Teller Machines, electronic banking outlets that allow customers to complete basic transactions without the need for a branch representative.

Bank Branches

Physical locations of a bank where customers can conduct a range of financial transactions in person.