A firm will continue to operate in the long run only if:
A) it earns a positive rate of return.
B) it earns a nonnegative economic profit.
C) it makes a positive accounting profit.
D) average cost exceeds price.
E) the average variable cost exceeds price.

Question

Quizplus · Accepted Answer

A firm will continue to operate in the long run if it earns a nonnegative economic profit, meaning it covers all its costs, including opportunity costs.

A Firm Will Continue to Operate in the Long Run