Whether the firms will survive or not, in case of negative economic profit.

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Chapter 8, Problem 8.3.4RQ

To determine

Whether the firms will survive or not, in case of negative economic profit.

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True or False? Briefly discuss. a. If a firm makes zero economic profit, the firm earns revenue that exceeds its economic costs. b. If a firm makes zero economic profit, it must shut down. c. If a firm makes zero economic profit, it can be earning positive accounting profit. d. If a firm makes zero economic profit, it has no fixed costs.

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