If Economic Profits in an Industry Are Zero and Implicit

question 182

Multiple Choice

If economic profits in an industry are zero and implicit costs are greater than zero, then

• A)resources will move out of the industry.
• B)there will be no production in the short run.
• C)accounting profits are greater than zero.
• D)new firms will enter the industry.

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Definitions:

Government Policy

Decisions, plans, and actions that are undertaken by a government to achieve specific goals within a society.

Computerized Inventory

The use of computer systems and software to track and manage inventory levels, orders, sales, and deliveries.

Preset Standards

Preset standards are predetermined criteria or benchmarks used to measure quality, productivity, or other performance levels in various processes.

Information Flowing

The movement or transfer of data and instructions among individuals or organizations, facilitating decision-making and coordination of activities.