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:

Statistical Inference

The process of drawing conclusions from data subject to random variation.

Questionnaire Data

Facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.

Personal Observation

An individual's own monitoring and recording of events or behaviors, used as a method of gathering data.

Data Collection Methods

Techniques and tools used to gather, measure, and analyze data from various sources for research or decision-making purposes.