___________________ occurs when _________________.
A)marginal costs; there is a change in price
B)economic profit; marginal revenue equals marginal costs
C)normal prices; there is an economic profit
D)normal profit; there is zero economic profit

Question

Quizplus · Accepted Answer

Normal profit occurs when there is zero economic profit, meaning that a business is earning enough revenue to cover all of its costs, including opportunity cost for the owners, but not making any extra profits on top of that. Marginal costs refer to the additional costs incurred when producing one additional unit of a good or service, and a change in price may affect these costs but does not necessarily result in normal profit or economic profit. Economic profit occurs when total revenue exceeds both explicit and implicit costs, and while marginal revenue equals marginal costs is a condition for profit maximization, it does not necessarily result in economic profit. Normal prices refer to prices in a competitive market that result in normal profit, but again, this does not necessarily occur when there is a change in price.

___________________ Occurs When _________________

___ Occurs When _