QuestionAugust 16, 2025

9. A firm earning a zero economic profit is __ the financial expectations of its investors. exceeding meeting not meeting gaining

9. A firm earning a zero economic profit is __ the financial expectations of its investors. exceeding meeting not meeting gaining
9. A firm earning a zero economic profit is __ the financial expectations of its investors.
exceeding
meeting
not meeting
gaining

Solution
4.7(253 votes)

Answer

meeting Explanation 1. Define Economic Profit Economic profit is total revenue minus total costs, including both explicit and implicit costs. 2. Interpret Zero Economic Profit Zero economic profit means the firm covers all its costs, including opportunity costs, thus meeting investor expectations.

Explanation

1. Define Economic Profit<br /> Economic profit is total revenue minus total costs, including both explicit and implicit costs.<br />2. Interpret Zero Economic Profit<br /> Zero economic profit means the firm covers all its costs, including opportunity costs, thus meeting investor expectations.
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