Why would a firm choose to remain in an industry in which it makes an

Why would a firm choose to remain in an industry in which it makes an economic profit of zero?

What will be an ideal response?

ANSWER

Making an economic profit of zero does not mean that the firm is not making any money. It means that it is covering all its costs, including opportunity costs. This means that all resources employed are earning just as much as they would in their next-best use, and thus that there is no gain from moving them to their next -best use.