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.

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Definitions:

Nematode Larvae

The juvenile form of nematodes, which are parasitic or free-living roundworms, undergoing several stages before reaching adulthood.

Lymphatic Ducts

Large vessels in the lymphatic system that transport lymph from the lymph nodes to the veins.

Neutrophils

A type of white blood cell that plays a crucial role in defending the body against infection by engulfing and destroying bacteria and fungi.

Macrophages

Large white blood cells found in tissue or mobile at sites of infection, absorbing and digesting cellular debris and pathogens.