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:

Fixed Ratio

Fixed ratio denotes a schedule of reinforcement where a response is reinforced only after a specified number of responses have occurred.

Variable-interval Schedule

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, contributing to a steady, stable rate of response.

Specific Number

An exact quantity or value, often mentioned to denote precision or to highlight importance within a particular context.

Randomly Varying

Characterized by changes that do not follow a predictable pattern and occur in a random manner.