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 considered a necessary component for a firm to remain in an industry over the long term, as they allow the firm to cover all its opportunity costs.

Which of the Following Is True of Normal Profits