Economics 9708 · AS & A Level · 7.5

7.5 — practice question

What would be unquestionably abnormal profits?

  • Athe extra revenue received from the sale of a farmer’s land to a house-building firm
  • Bthe extra revenue received by a firm from an unexpectedly large increase in demand
  • Cthe total revenue from the sale of a firm’s products in excess of the total variable costs of the firm
  • Dthe total revenue in excess of total costs of the firm above the minimum needed to keep the firm in business in the long run

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