In the short run, a perfectly competitive firm’s economic profits ……. ?
Select ONE answer:
- must be positive.
- must be negative, that is the firm must incur an economic loss.
- might be positive, negative (an economic loss), or zero (a normal profit).
- must equal zero, that is the firm must earn a normal profit.
Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Economics KS5 classes.
The answer is 3
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