A Firm Earning a Normal Profit

question 5

Multiple Choice

A firm earning a normal profit

• A) should exit the industry.
• B) will shut down.
• C) has no incentive to leave the industry.
• D) is covering explicit costs but not implicit costs.
• E) is covering implicit costs but not explicit costs.

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Definitions:

Unique Culture

The distinctive beliefs, customs, practices, and social behavior of a particular nation, organization, or group.

Common Heritage

Shared cultural, historical, or social traditions, values, or traits among a group of people.

Behave

To act in a manner that is considered appropriate or expected in a particular context or situation.

Straightforwardness

The quality of being direct, clear, and honest in communication without any ambiguity or evasion.