Normal profit is
A) the same as economic profit.
B) part of the firm's explicit costs.
C) part of the firm's opportunity costs.
D) Answers A and B are correct.
E) Answers A and C are correct.

Question

Quizplus · Accepted Answer

Normal profit is considered part of the firm's opportunity costs because it represents the minimum amount the firm needs to earn to keep its resources in their current use, rather than reallocating them to the next best alternative.

Normal Profit Is