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If a Firm Is Earning Zero Economic Profits

Question 74

Multiple Choice

If a firm is earning zero economic profits:


A) its revenues are sufficient to pay explicit costs,but not implicit costs.
B) the owner will not be able to pay himself or herself a salary.
C) it will shut down in the long run,but will continue to operate in the short run.
D) the owners are earning a return on their time and investment that is equal to the opportunity costs of that time and investment.

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