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When a Firm Is at Its Short-Run Break-Even Point

Question 16

Multiple Choice

When a firm is at its short-run break-even point


A) economic profits are positive.
B) economic profits equal zero and the firm should shut down.
C) economic profits equal zero and the firm is earning a nominal rate of return on investment.
D) economic profits are negative but the firm should continue to produce because accounting profits are positive.

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