When a Firm Earns Less Than a Normal Profit

question 15

Multiple Choice

When a firm earns less than a normal profit,

• A) the revenues generated cannot pay all explicit costs and the opportunity cost of using owner-supplied resources.
• B) accounting profit is negative.
• C) economic profit is zero.
• D) normal profit is negative.
• E) all of the above

---

Definitions:

Mean

A measure of central tendency representing the central or typical value in a dataset, calculated as the sum divided by the number of data points.

Rounding Rules

Guidelines for rounding numerical values, often to a specified number of decimal places, to simplify reporting or calculation.

Rounded

The process of adjusting numbers to a specified degree of precision, often used to simplify data or match a required format.

Quotient

The outcome achieved when one amount is divided by another.