Normal profit implies that

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Normal profit is the minimum amount of profit necessary to keep a firm in operation. It means that the factors of production employed by the firm are earning as much as they could in the best alternative employment. Therefore, the firm is earning zero economic profit, but still covering all its costs, including opportunity costs. Economic profit may be positive or negative, but normal profit is always zero. Firms may or may not expand their scale of production, depending on market conditions and profit opportunities.

Normal Profit Implies That