Which of the Following Is True of Supernormal Pro?ts

question 25

Multiple Choice

Which of the following is true of supernormal pro?ts?

• A) When the costs of all the factors of economic production are greater than revenues, ?rms earn supernormal pro?ts.
• B) As long as there are no barriers to entry, a ?rm in an industry can continue to earn
• C) Supernormal pro?ts are ?nancial returns greater than normal pro?ts.
• D) In the long run, perfectly competitive ?rms earn supernormal pro?ts.

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Definitions:

Order Cycle

The complete sequence of processes from order placement to delivery of goods to the customer, impacting lead time and customer satisfaction.

Customer Service

Assistance and advice provided by a company to those people who buy or use its products or services.

Danger Zone

In food safety, the danger zone refers to temperatures between 40°F and 140°F where bacteria grow most rapidly, potentially leading to foodborne illnesses.

Competitor

An entity that operates in the same industry or market as another, offering similar goods or services.