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If a Competitive Firm Routinely Earns a Larger Profit Than

Question 71

Multiple Choice

If a competitive firm routinely earns a larger profit than the "normal profit" for its industry


A) the firm's owners are likely to withdraw from the industry in order to retire early.
B) new firms are likely to enter the industry, pushing up the prevailing market price.
C) new firms are likely to enter the industry, depressing the prevailing market price.
D) the firm will continue to earn its "normal profits" far into the future.

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