A firm's profit is zero at the break-even point. In economics, this means it earns

supernormal profitCorrect answerYour answera loss that will make it leave at onceCorrect answerYour answernormal profit, enough to keep it in the industryCorrect answerYour answernothing at all, so it must shut downCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Costs in economics include the normal return the owner could earn elsewhere.
So TR = TC means the owner earns exactly that normal return: normal profit.

Concept: Normal profit
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsProfit maximisation and the firm's supply

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A firm's profit is zero at the break-even point. In economics, this means it earns

Explanation