In economic analysis, any amount of profit earned above zero is considered "above normal" becaus

Step 1: In economic analysis, firms are typically expected to earn a profit that covers their op

Question

In economic analysis, any amount of profit earned above zero is considered "above normal" because (A) normally firms are supposed to earn zero profit. (B) this would indicate that the firm's revenue exceeded both its accounting and opportunity cost. (C) this would indicate that the firm was at least earning a profit equal to its opportunity cost. (D) this would indicate that the firm's revenue exceeded its accounting cost.

          In economic analysis, any amount of profit earned above zero is considered "above normal" because
(A) normally firms are supposed to earn zero profit.
(B) this would indicate that the firm's revenue exceeded both its accounting and opportunity cost.
(C) this would indicate that the firm was at least earning a profit equal to its opportunity cost.
(D) this would indicate that the firm's revenue exceeded its accounting cost.

In economic analysis, any amount of profit earned above zero is considered "above normal" because
(A) normally firms are supposed to earn zero profit.
(B) this would indicate that the firm's revenue exceeded both its accounting and opportunity cost.
(C) this would indicate that the firm was at least earning a profit equal to its opportunity cost.
(D) this would indicate that the firm's revenue exceeded its accounting cost.

Added by Juan Jos- P.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Jerelyn Nevil

03/02/2024

Step 1

This means that the revenue generated should at least be enough to cover the costs of resources used in production, including the opportunity cost of the resources. Show more…

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In economic analysis, any amount of profit earned above zero is considered "above normal" because ◻ normally firms are supposed to earn zero profit. ◻ this would indicate that the firm's revenue exceeded both its accounting and opportunity cost. ◻ this would indicate that the firm was at least earning a profit equal to its opportunity cost. ◻ this would indicate that the firm's revenue exceeded its accounting cost. In economic analysis,any amount of profit earned above zero is considered"above normal" because normally firms are supposed to earn zero profit this would indicate that the firm's revenue exceeded both its accounting and opportunity cost this would indicate that the firm was at least earning a profit equal to its opportunity cost. this would indicate that the firm's revenue exceeded its accounting cost