In a Perfectly Competitive Industry, When a Firm Is Producing

Multiple Choice

In a perfectly competitive industry, when a firm is producing so that its total revenue equals its total cost, the firm is

A) making zero economic profit.
B) making an economic profit.
C) definitely not maximising its profit.
D) incurring an economic loss.
E) None of the above answers is correct because the relationship between total revenue and total cost has nothing to do with the firm's profit or loss.