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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

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BuyFindarrow_forward

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

“A firm that earns only normal profit is not covering all its costs.” Do you agree or disagree? Explain your answer.

To determine

Explain the firm’s zero economic profit.

Explanation

Zero economic profit is also called normal profit. The normal profit is the situation in which a firm raises sufficient revenue to cover its total costs and remain competitive in an economy. This means that the normal profit indicates that t...

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