A firm will shut down in the long run if its earning is
A firm will shut down in the long run if its earning is
Less than normal profit
Greater than normal profit
Equal to super normal profit
Less than super normal profit
Correct answer is A
The long run is a phase where all factors of production are variable and firms are able to adjust all costs. If its earnings are less than the normal profits, it will shut down. A firm should earn enough to cover its total cost per unit in order to remain in business.
A firm that charges the maximum price without attracting competition from new entrants is ...
A demand schedule shows the quantities of goods that are ...
Which of the following statements describes a mixed economy? ...
The variance of a given set of numbers is defined as the ...
Which of the following defines Economics most comprehensively? ...
What is the median quantity? ...
Non-bank financial intermediaries do not ...
Other things being equal, an increase in supply will lead to ...