In Which Situation Would a Firm Earn a Normal Profit

question 106

Multiple Choice

In which situation would a firm earn a normal profit?

• A) A hair salon earns $50,000 in economic profits and generates $0 in implicit costs.
• B) A mechanic earns $75,000 in economic profits and generates $75,000 in implicit costs.
• C) A car wash earns $0 in accounting profits and generates $20,000 in implicit costs.
• D) A bakery earns $10,000 in accounting profits and generates $10,000 in implicit costs.

---

Definitions:

Agility

The ability to move quickly and easily, often reflecting physical coordination, balance, and speed.

Intelligence Test

is an assessment tool designed to measure cognitive abilities, including reasoning, problem-solving, and understanding complex ideas.

Educational Experiences

The range of encounters and activities that contribute to the learning and personal development of an individual.

Health Issues

Conditions affecting an individual's physical or mental well-being.