A firm making zero economic profit _______________.

earns super normal profits

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incur losses

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earns a normal profit

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profit or loss is indeterminate

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Solution

The correct option is C earns a normal profit
Economic profit refers to the super normal profit which is not included in the cost of the commodity. Therefore, a firm earning zero economic profit is definitely earning normal profit which is the minimum amount of return which a producer expects from the product sold and which is included in the cost of the commodity.

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