Question 1
If economic profit is zero, a firm
◦ earns a negative rate of return.
◦ will leave the industry.
◦ earns a positive but below normal rate of return.
◦ earns exactly a normal rate of return.
Question 2
If economic profit is zero, a firm
◦ earns a negative rate of return.
◦ will leave the industry.
◦ earns a positive but below normal rate of return.
◦ earns exactly a normal rate of return.