Respuesta :
If firms are earning zero profits, this means that they must be producing at an output level at price equals average total cost.
When a company's total income equals the sum of its explicit and hidden costs, there is no economic profit
In other words, it happens when a company's revenue is equal to zero after subtracting all of its costs, both explicit and implicit.
It implies that the company is only paying all of its expenses, such as the cost of maintaining owners and capital.
If the market price equals the average cost at the output level that maximizes profits, the firm is operating at a loss.
The zero profit point is when the average cost curve intersects the marginal cost curve, at the minimum of the average cost curve.
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