Question
Which of the following statements about profit is/are true? A. Zero economic profits mean that the firm is not making any money (accounting profit equals
Which of the following statements about profit is/are true?
A. Zero economic profits mean that the firm is not making any money (accounting profit equals zero).
B. When a firm earns normal profits, its economic profit is equal to zero.
C. Normal profit, by definition equals accounting profit.
D. When a firm earns a normal profit, its accounting profit is equal to its opportunity cost.
E. Normal profit, by definition is equal to a firm's opportunity cost.
F. The difference between economic profit and accounting profit is equal to OC.
G. When accounting profit is equal to OC, economic profit MUST be zero.
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