The statement is true. Economic profit equals zero when total revenue (TR) equals total cost (TC).
In Economics, total cost is defined as the sum of costs that is incurred by firm for the production of certain level of output.
Mathematically, it is calculated as:
TC (total cost) = TFC (total fixed cost) + TVC (total variable cost)
Fixed cost refers to a cost that does not change with an increase or decrease in the number of goods or services produced or sold.
Variable cost changes with an increase or decrease in the number of goods or services produced or sold.
Total revenue is also called gross revenue. It is the total amount of income your company brings in from selling your products/services.
When total revenue (TR) equals total cost (TC), economic profit equals zero.
Hence, the given statement is true.
Learn more about fixed cost here https://brainly.com/question/17100497
#SPJ1
