When Economic Profits in an Industry Are Zero

question 3

Multiple Choice

When economic profits in an industry are zero:

• A)firms are really doing badly.
• B)firms are doing as well as they could do in other markets.
• C)firms should exit so they can make an economic profit in some other market.
• D)the industry is not in long-run equilibrium.

---

Definitions:

NAD+

Nicotinamide adenine dinucleotide, a coenzyme involved in redox reactions, acting as an electron carrier.

Glycolysis

The metabolic pathway that converts glucose into pyruvate, generating ATP and NADH, occurring in the cytoplasm of cells.

Net Gain

The difference between the total earned and the total spent, resulting in either a profit or a deficit.

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to generate energy through the oxidation of acetate derived from carbohydrates, fats, and proteins into carbon dioxide and water.