Which of the Following Is True of Normal Profits

question 42

Multiple Choice

Which of the following is true of normal profits?

• A)They are necessary to keep a firm in the industry in the long run.
• B)They are zero under pure competition in the long run.
• C)They are excluded from a firm's costs of production.
• D)They are what attract other firms to enter an industry.

---

Definitions:

Decision Trees

A graphical representation used for decision-making, showing various outcomes from a series of related choices, helping to weigh options and possible consequences.

Decision Tables

A tool used in both computer programming and business decision-making that represents the logic of decision making through a matrix of conditions and the actions to be taken.

Conditional Value

A numerical value assigned to an outcome in a decision-making process, dependent on specific conditions being met.

Optimistic Decision

A decision-making approach that involves choosing the option with the most favorable possible outcome under uncertain conditions, assuming the best-case scenario.