A firm that makes zero economic profits Multiple Choice O Must eventually go bankrupt and exit the industry. Does not cover its variable costs and should shut down in the short run. O Incurs an accounting loss if fixed costs are greater than variable costs. Incurs an acco Covers all its costs, including a provision for normal profit. Normal profit Multiple Choice Covers the full opportunity cost of the resources used by the firm. Is an above-average rate of return. () is the accounting profit earned when economic profits are greater than zer o is sufficient Is sufficient to induce entry into the industry. Assume an apple farmer incurs the following costs and revenues Fertilizer $200 Seeds $75 Water $250 Wages $750 Property taxes $600 Interest payments on borrowed funds $1,200 Sales of apples $4,000 The accounting profit is equal to Assume an apple farmer incurs the following costs and revenues Fertilizer $200 Seeds $75 Water $250 Wages $750 Property taxes $600 Interest payments on borrowed funds $1,200 Sales of apples $4,000 Suppose the entrepreneur could earn $1,000 as an employee elsewhere. This means the economic profit is Market structure is determined by the Multiple Choice Annual revenue, costs, and profits for an industry. Number and relative size of the firms in an industry. Amount of compensation given to the CEOs. Price charged for the good or service produced