Which of the following is true of supernormal pro?ts?
A) When the costs of all the factors of economic production are greater than revenues, ?rms earn supernormal pro?ts.
B) As long as there are no barriers to entry, a ?rm in an industry can continue to earn
C) Supernormal pro?ts are ?nancial returns greater than normal pro?ts.
D) In the long run, perfectly competitive ?rms earn supernormal pro?ts.

Question

Quizplus · Accepted Answer

Supernormal profits are defined as financial returns that exceed the normal expected returns, or the minimum level of profit needed for a company to remain competitive in the market.

Which of the Following Is True of Supernormal Pro?ts