If Firm a Is Making Zero Economic Profits

question 65

Multiple Choice

If Firm A is making zero economic profits,

• A) Firm A is also making negative accounting profits.
• B) Firm A is breaking even when opportunity cost is taken into consideration.
• C) other firms want to enter the market.
• D) Firm A wants to leave the market.
• E) Firm A wants to shut down in the short run.

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Definitions:

Brand Communities

Groups of consumers who are bonded by their loyalty to a brand and engage in activities and social interactions around it.

Existing Practices

The current methods, processes, or operations adopted by businesses, institutions, or individuals as standard or conventional procedures.

Brand Strengthen

Involves increasing a brand’s equity and market position through strategies aimed at enhancing its perception and relationship with consumers.

Communal Branding

A branding strategy that emphasizes community involvement and identity in promoting a brand.