Normal profit is the ________.Normal profit ________ part of a firm's opportunity cost because ________.
A)return that an entrepreneur can expect to receive on the average;is;it is the cost of a foregone alternative, which is running another firm
B)profit used by the Canada Revenue Agency to calculate tax owing;is;part of it must be paid to the government and is no longer available to the entrepreneur
C)profit used by the Canada Revenue Agency to calculate tax owing;is;it is paid in cash
D)return that an entrepreneur can expect to receive on the average;is not;it is not paid in cash
E)profit used by the Canada Revenue Agency to calculate tax owing;is;it includes depreciation

Question

Quizplus · Accepted Answer

Normal profit is the return that an entrepreneur can expect to receive on the average, which means it is not considered a profit above and beyond the opportunity cost of running the business. Therefore, it is a part of the firm's opportunity cost because it represents the cost of a foregone alternative, which could be running another firm or pursuing a different opportunity.

Normal Profit Is the ________