A firm that is making normal profits in the long run will have an incentive to:
A) remain in production
B) produce a different product
C) expand output
D) shut down

Name: A firm that is making normal profits in the long run will have an incentive to: A) remain in production B) produce a different product C) expand output D) shut down
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Question

Quizplus · Accepted Answer

A firm making normal profits in the long run is covering all its costs, including opportunity costs, and thus has no incentive to exit or change its current operations.

A Firm That Is Making Normal Profits in the Long