When a firm is at its short-run break-even point, 

A. economic profits equal zero and the firm should shut down 

B. economic profits are positive. 

C. economic profits equal zero and the firm is earning a nominal rate of return on investment. 

D. economic profits are negative but the firm should continue to produce because accounting profits are positive.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is A economic profits equal zero and the firm should shut down Heres why the other options are incorrect B economic profits are positive This is incorrect because at the breakeven point total revenue just covers total costs leaving no room for economic profit ... View the full answer