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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