Question 1
A firm ________ if it earns zero economic profit.
◦ 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
A firm ________ if it earns zero economic profit.
◦ 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