Complete the statement by selecting the correct option. A firm earns zero economic profit ______

CA Foundation · Business Economics · PYQS · May 2026
Complete the statement by selecting the correct option. A firm earns zero economic profit ______
(A) A. If price = Minimum ATC
(B) B. If price > Minimum ATC
(C) C. If price < Minimum ATC
(D) D. If price < Average Variable Cost

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. If price = Minimum ATC

Topics: Price Determination in Different Markets

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