A Zero Economic Profit Is Not a Bad Thing Because

question 122

Multiple Choice

A zero economic profit is not a bad thing because:

• A)it is a situation in which the owners,or shareholders,of a firm could not do better elsewhere.
• B)it is a situation in which the resources of a firm are always underutilized.
• C)it means that a firm is paying an interest rate that is above the market rate.
• D)it means that stock prices will not fall.
• E)it means that investors are better off in the current venture than they would be in any other investment.

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Definitions:

Concrete-Operational Children

A developmental stage in Piaget's theory, typically from ages 7 to 11, when children gain a better understanding of concrete events and logical operations but still struggle with abstract concepts.

Egocentric

The habit of interpreting all events and situations with regard to one's own personal perspective, neglecting the viewpoints or emotions of other people.

Transitivity

In logic and mathematics, a property of relations that states if relation A exists between B and C, and relation A also exists between C and D, then A must exist between B and D as well.

Decentration

A cognitive ability to consider multiple aspects of a situation rather than focusing on just one.