There are many reasons why a firm can earn above-normal profits. These reasons include all of the following EXCEPT ____.
A) access to superior labor or managerial talents
B) superior access to financial resources at lower costs
C) patent control of superior product designs
D) ability of new firms to acquire necessary factors of production

Question

Quizplus · Accepted Answer

The ability of new firms to acquire necessary factors of production is not a reason why a firm can earn above-normal profits. In fact, if new firms are able to easily acquire the same factors of production, it could lead to increased competition and lower profits for existing firms.

There Are Many Reasons Why a Firm Can Earn Above-Normal