Which Statement Is True About a Firm That Earns ZERO

question 23

Multiple Choice

Which statement is true about a firm that earns ZERO economic profit?

• A) The firm is competing in a non-competitive environment.
• B) The market must have high entry barriers to other firms.
• C) The NPV of projects the firm considers equals zero.
• D) The accounting income for projects equals zero.

---

Definitions:

Night Watch

A 1642 painting by Rembrandt van Rijn, famous for its dramatic use of light and shadow, which portrays a company of Dutch militiamen.

Reduced in Size

A term indicating something has been made smaller or more compact in dimensions or scale.

Judith Leyster

A 17th-century Dutch painter renowned for her genre works and portraits, notable for being one of the few recognized female artists of her time.

Self-Portrait

An artwork in which the artist creates a representation of themselves, often a painting or drawing.