Which of the following statements is true?
A)Explicit costs always equal implicit costs.
B)Zero economic profit is a smaller dollar figure than normal profit.
C)Zero economic profit is a larger dollar figure than normal profit.
D)Saying that a firm earned zero economic profit is the same as saying it earned normal profit.
E)none of the above

Question

Quizplus · Accepted Answer

Zero economic profit means that a firm has covered all its explicit and implicit costs, including a normal return on investment. This is equivalent to earning a normal profit, which is the minimum profit necessary to keep a firm in business in the long term.

Which of the Following Statements Is True