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In Which Situation Would a Firm Earn a Normal Profit

Question 300

Multiple Choice

In which situation would a firm earn a normal profit?


A) A hair salon earns $50,000 in economic profits and generates $0 in implicit costs.
B) A mechanic earns $75,000 in economic profits and generates $75,000 in implicit costs.
C) A car wash earns $0 in accounting profits and generates $20,000 in implicit costs.
D) A bakery earns $10,000 in accounting profits and generates $10,000 in implicit costs.

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