The corporation makes no money if the price it receives forces it to produce at a level where average cost equals price, which happens at the minimum point of the AC curve.
<h3>What happens if there are no economic gains?</h3>
Normal profit is also referred to as "zero economic profit" since a business will be in a state of normal profit when its economic profit is equal to zero. When all resources are being used effectively and cannot be employed more effectively elsewhere, normal profit arises.
<h3>Why Do Competitor Companies Maintain Their Existence If They Make No Profit?</h3>
Total revenue less total costs = profit. All of the firm's opportunity expenses are included in the total cost. In the zero-profit equilibrium, the company's revenue covers the owners' time and financial outlays to maintain the operation.
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