A Firm Is Making Zero Economic Profits

question 33

Multiple Choice

A firm is making zero economic profits. From this, we know that

• A) the firm is going to go out of business.
• B) implicit costs are zero.
• C) the firm is going to stay in business, but will not be able to attract new financial capital.
• D) the firm will stay in business since it is covering all relevant opportunity costs.

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Definitions:

Divisional Geographic Structure

An organizational structure where operations are grouped based on geographical regions.

Functional Structure

An organizational design where employees are divided into departments based on their functions or specializations.

Diverse Product Groups

A variety of product categories or lines that a company offers to cater to different market segments or consumer needs.

Departmentalization

A method of dividing an organization into different departments, which allows greater specialization and efficiency.