Which of the following is true of normal profits?
A)They are necessary to keep a firm in the industry in the long run.
B)They are zero under pure competition in the long run.
C)They are excluded from a firm's costs of production.
D)They are what attract other firms to enter an industry.

Question

Quizplus · Accepted Answer

Normal profits are the minimum level of profit needed for a firm to remain competitive in the industry in the long run. They are considered a cost of production and are not zero under pure competition in the long run.

Which of the Following Is True of Normal Profits