This profit is an economic loss. Economic profit measures the total revenue minus all relevant costs, If the economic profit is zero, then the total revenue is equal to the total relevant costs, resulting in an economic loss.
Explanation:
The firm is not making money. Although it is not in economic loss, the firm is not generating any positive economic profit. This means that the costs of producing the firm's products or services are higher than the revenues that the firm is bringing in. This is not a sustainable situation for the firm and it will need to increase revenues or reduce costs if it wants to make a positive economic profit.
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