Question

A firm is making an economic loss of $100,000. This means that: multiple choice 1 the firm should immediately exit the industry. the firm's revenues are less than its opportunity costs. the firm is not making an accounting profit. the firm could increase economic profit if its resources were used in a different way. If a firm is making an economic profit of zero: multiple choice 2 it will have unhappy stockholders. it is not making an accounting profit. the firm should change to a different line of business. it cannot make a higher economic profit by changing how it is using its resources.

Answer 1

Answer:

Explanation:

A firm is making an economic loss of $100000

- the firm could increase economic profit if its resources were used in a different way

Economic loss implies that the firm could better profit in next best alternative