Afirm is making an economic loss of $100,000.
this means that:
- the firm...
Afirm is making an economic loss of $100,000.
this means that:
- the firm should immediately exit the industry.
- the firm could increase economic profit if its resources were used in a different way.
- the firm is not making an accounting profit.
- the firm's revenues are less than its opportunity costs.
if a firm is making an economic profit of zero:
- it will have unhappy stockholders.
- it cannot make a higher economic profit by changing how it is using its resources.
- it is not making an accounting profit.
- the firm should change to a different line of business.
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