If a Firm Is Earning Zero Profits

question 77

Multiple Choice

If a firm is earning zero profits

• A)its revenues are sufficient to pay explicit costs,but not implicit costs.
• B)the owner will not be able to pay himself or herself a salary.
• C)it will shut down in the long run,but will continue to operate in the short run.
• D)the owners are earning a return on their time and investment that is equal to the opportunity costs of that time and investment.

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Definitions:

Employee Assistance Programs

Workplace initiatives that provide confidential counseling and support services to employees dealing with personal or professional issues.

Pension Plans

Financial programs that provide income to individuals during their retirement, funded by previous employment contributions.

Family Conflicts

Disagreements and battles of interest within a family unit, which can affect the emotional and psychological well-being of members.

Legal Troubles

Difficulties or disputes that involve the law or legal system, including litigation, criminal charges, or regulatory investigations.