When a Profit-Maximising Firm in a Competitive Market Has Zero

question 50

Multiple Choice

When a profit-maximising firm in a competitive market has zero economic profit, accounting profit:

• A)is positive
• B)is negative (accounting losses)
• C)is also zero
• D)could be positive, negative or zero

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Definitions:

Liable

Legally responsible for one's actions or obligations, often in the context of paying damages or fulfilling a contractual agreement.

Durable Power of Attorney

A legal document granting someone the authority to act on another's behalf in legal and financial matters, which remains effective even if the grantor becomes incapacitated.

Authority

refers to the lawful right or power to make decisions, give orders, or enforce laws.

Incapacitation

A state of being unable to act or make legal decisions due to physical or mental limitations.