A Zero Economic Profit Is Not a Bad Thing Because

question 122

Multiple Choice

A zero economic profit is not a bad thing because:

• A)it is a situation in which the owners,or shareholders,of a firm could not do better elsewhere.
• B)it is a situation in which the resources of a firm are always underutilized.
• C)it means that a firm is paying an interest rate that is above the market rate.
• D)it means that stock prices will not fall.
• E)it means that investors are better off in the current venture than they would be in any other investment.

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Definitions:

Empowerment

The act of giving power or authority to individuals or groups, often aimed at enabling them to take control over their lives or work.

Global Economy

The interconnected worldwide economic system, comprising the production, distribution, and consumption of goods and services across countries.

Raised Wages

An increase in the amount of money paid to workers for their labor, often seen as a means to improve living standards or reward performance.

Lowered Protectionism

A reduction in trade barriers and restrictions by a government to allow for more free exchange of goods and services between nations.