Economics Multiple Choice Question – 7 December 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

In the short run, a perfectly competitive firm’s economic profits ……. ?

Select ONE answer:

  1. must be positive.
  2. must be negative, that is the firm must incur an economic loss.
  3. might be positive, negative (an economic loss), or zero (a normal profit).
  4. 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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