The correct answer is: normal profit; economic loss.

Here's why:

1. A fair return price is a price that allows a firm to cover all its costs including a normal profit. A normal profit is a profit that is just enough to keep the firm in business. It's the minimum level of profit needed for a company to remain competitive in the market. So, a fair return price will lead to a normal profit.

2. A socially optimal price is a price that is set at the level where the society's total welfare is maximized. This means that the price is set at the level where the sum of consumer surplus and producer surplus is maximized. At this price, the firm may not be able to cover all its costs and may incur an economic loss. So, a socially optimal price will lead to an economic loss.

Question

The correct answer is: normal profit; economic loss.

Here's why:

1. A fair return price is a price that allows a firm to cover all its costs including a normal profit. A normal profit is a profit that is just enough to keep the firm in business. It's the minimum level of profit needed for a company to remain competitive in the market. So, a fair return price will lead to a normal profit.

2. A socially optimal price is a price that is set at the level where the society's total welfare is maximized. This means that the price is set at the level where the sum of consumer surplus and producer surplus is maximized. At this price, the firm may not be able to cover all its costs and may incur an economic loss. So, a socially optimal price will lead to an economic loss.

Knowee AI · Accepted Answer

The correct answer is: normal profit; economic loss.

Here's why:

1. A fair return price is a price that allows a firm to cover all its costs including a normal profit. A normal profit is a profit that is just enough to keep the firm in business. It's the minimum level of profit needed for a company to remain competitive in the market. So, a fair return price will lead to a normal profit.

2. A socially optimal price is a price that is set at the level where the society's total welfare is maximized. This means that the price is set at the level where the sum of consumer surplus and producer surplus is maximized. At this price, the firm may not be able to cover all its costs and may incur an economic loss. So, a socially optimal price will lead to an economic loss.

Multiple Choice QuestionIn general, as shown in the figure, a fair return price will lead to Blank and a socially optimal price will lead to Blank.Multiple choice question.economic profit; normal lossnormal profit; economic profitnormal profit; economic losseconomic loss; normal profit

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Multiple Choice QuestionIn general, as shown in the figure, a fair return price will lead to Blank______ and a socially optimal price will lead to Blank______.Multiple choice question.economic profit; normal lossnormal profit; economic profitnormal profit; economic losseconomic loss; normal profit

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Multiple Choice QuestionIn general, as shown in the figure, a fair return price will lead to Blank and a socially optimal price will lead to Blank.Multiple choice question.economic profit; normal lossnormal profit; economic profitnormal profit; economic losseconomic loss; normal profit