Card 1 of 23
Why is normal profit included within a firm's costs?
A
It is the entrepreneur's sunk cost - the expenditure that cannot be recovered if the firm leaves the market.
B
It is the entrepreneur's variable cost - the payment that rises whenever the firm's level of output increases.
C
It is the entrepreneur's fixed cost - the payment that remains unchanged as the firm's output varies.
D
It is the entrepreneur's opportunity cost - the reward available in the next best use of resources.
Card 1 of 23
3.3.4 Normal profits, supernormal profits and losses Flashcards
23 flashcards on Edexcel A A Level Economics 3.3.4 Normal profits, supernormal profits and losses: the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3.