Wlhy would a firm be happy to earm zero economic protits? Recause zero cconomic profit means that the firm earnsO enough in total revenues to pay for all the fixed costs and some hut not all of the varlable costs.O enough in total revenues to pay for all the accounting custs but rrone of the opportunity costs.O zero accounting profits.O enough in total revenues to pay for all the laccounting costs and all of the opportunity costs.

Accounting profit = Total revenue – total cost Economic profit = accounting profit –…

Why would a tirm be happy to cam zero economic protts? Because zero oeonomic profit means that the fim earns KD enough in total revenues to pay Tor all the fixot costu and some hut not.all of the wiriable costs. O enough in total mvenues to pay for all the acCOunting custs but rone of the opportunity costs. D zero accounting profits

Why would a tirm be happy to cam zero economic protts? Because zero oeonomic profit means that the fim earns KD enough in total revenues to pay Tor all the fixot costu and some hut not.all of the wiriable costs. O enough in total mvenues to pay for all the acCOunting custs but rone of the opportunity costs. D zero accounting profits

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter21: Costs And The Supply Of Goods

Section: Chapter Questions

Problem 16CQ

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Why would a firm be happy to earn zero economic profits? Because zero economic profit means that the firm earns Select one.O. enough in total revenues to pay for all the fixed cost and some but not all of the variable costs.O. enough in total revenues to pay for all the accounting costs but none of the opportunity costs.O. zero accounting profit.O. enough in total revenues to pay for all the accounting costs and all of the opportunity costs.