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3.3.4 Normal profits, supernormal profits and losses

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12
Question 1

AeroGreens Ltd, a high-tech vertical farming startup, reported a net loss of £350,000 in its second year of operation. Despite this, the company continued to run its automated LED-lit hydroponic trays and deliver microgreens to premium local restaurants.

Explain one condition under which a loss-making firm, such as AeroGreens, might continue to operate in the short run.

[4]

3.3.4 Normal profits, supernormal profits and losses Questions

  1. A Level
  2. /Economics
  3. /3.3.4 Normal profits, supernormal profits and losses