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If Firms in an Industry Are Earning Accounting Profits, It

Question 191

Multiple Choice

If firms in an industry are earning accounting profits, it follows that


A) other firms will try to enter the industry to compete away the accounting profits.
B) the firms in the industry are earning economic profits, too.
C) the firms in the industry are earning economic rent.
D) the total revenue of these firms is greater than the firms' explicit costs.

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