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, covering opportunity costs and ensuring the firm continues operations.

Which of the Following Is True of Normal Profits