Economic Profit Question (Check My Work)?

Question

What is the lowest value of economic profit that the firm must earn if it is to keep its resources in the current industry?

A. Economic profit equal to explicit costs of production

B. Economic profit equal to implicit costs of production

C. Zero economic profit

D. Economic profit that is greater than zero

E. Economic profit that is less than zero

My Thoughts: A company should shoot for an Economic profit of zero (C).

Answer 1

Answer is C. Zero economic profit yields a positive accounting profit.

Explanations for why the others are wrong:

A) This says economic profit equal to "accounting" costs. This means if you factor in economic (implicit) costs, you are operating at a total economic loss.

B) Like B, once you factor in the other costs (in this case, you consider the accounting costs), you are operating a total economic loss.

D) This means a firm has a positive accounting profit guaranteed, but firms can still make money and produce at lower economic profits.

E) This is obviously wrong. Economic profit that is less than zero may or may not mean a positive accounting profit. Because it may not mean a positive accounting profit, what kind of firm would operate using this?