If there are normal short run profits in an industry, there will be:
A) entry.
B) exit.
C) no entry or exit.
D) below-normal profits in the next period.

Name: If there are normal short run profits in an industry, there will be: A) entry. B) exit. C) no entry or exit. D) below-normal profits in the next period.
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Question

Quizplus · Accepted Answer

In the short run, normal profits mean firms are covering their costs, so there is no incentive for new firms to enter or existing firms to exit the industry.

If There Are Normal Short Run Profits in an Industry