When Economic Profits in an Industry Are Zero and Implicit

question 167

Multiple Choice

When economic profits in an industry are zero and implicit costs are positive:

• A) accounting profits will be greater than zero.
• B) resources will be attracted to the industry.
• C) resources will not tend to either enter or leave the industry, other things equal.
• D) both (a) and (c) will be true.

---

Definitions:

User-Based Definition

A user-based definition refers to the explanation or interpretation of a concept, term, or system based on the perspective or use case of the end-user.

Product-Based Definition

An approach that defines a product by its features, components, and attributes rather than its function or the customer need it satisfies.

Manufacturing-Based Definition

relates to quality concepts focusing on adherence to specifications and efficiency in production processes.