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zero economic profit is not a bad thing because: A. it is a situation in which t

ID: 1190992 • Letter: Z

Question

zero economic profit is not a bad thing because: A.  it is a situation in which the owners, or shareholders, of a firm could not do better elsewhere. B.  it is a situation in which the resources of a firm are always optimally utilized. C.  it means that a firm is paying an interest rate that is below the market rate. D.  it means that stock prices will not fall. E.  it means that investors are better off in the current venture than they would be in any other investment. zero economic profit is not a bad thing because: A.  it is a situation in which the owners, or shareholders, of a firm could not do better elsewhere. B.  it is a situation in which the resources of a firm are always optimally utilized. C.  it means that a firm is paying an interest rate that is below the market rate. D.  it means that stock prices will not fall. E.  it means that investors are better off in the current venture than they would be in any other investment.

Explanation / Answer

A.  it is a situation in which the owners, or shareholders, of a firm could not do better elsewhere.