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What return keeps a firm in its industry when AR = AC?
A
Normal profit is the minimum return needed to keep a firm in its industry.
B
Supernormal profit is the return earned above the minimum needed to keep a firm in its industry.
C
Accounting profit is the total revenue remaining after a firm pays its explicit costs.
D
Subnormal profit is the return earned when a firm cannot cover its opportunity cost in its industry.
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7.5.9 definition of normal, subnormal and supernormal profit Flashcards
26 flashcards on CIE Intl A Level Economics 7.5.9 definition of normal, subnormal and supernormal profit: the key terms and definitions you need to recall.