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-Refer to Situation 21-4

Question 143

Multiple Choice

-Refer to Situation 21-4. Is Joe earning a normal profit? A) No, he is earning an above-normal profit. B) No, but he is earning an accounting profit and that is all that matters. C) Yes, but his economic profit is $0 and that is not good. D) We cannot be sure, because normal profit is a subjective judgment. E) No, his economic profit is negative.
-Refer to Situation 21-4. Is Joe earning a normal profit?


A) No, he is earning an above-normal profit.
B) No, but he is earning an accounting profit and that is all that matters.
C) Yes, but his economic profit is $0 and that is not good.
D) We cannot be sure, because "normal" profit is a subjective judgment.
E) No, his economic profit is negative.

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