If a firm earns normal profit, then it has generated revenues
A)equal to the sum of implicit and explicit costs.
B)greater than total opportunity costs.
C)sufficient to cover explicit costs, but not implicit costs.
D)sufficient to cover implicit costs, but not explicit costs.

Question

Quizplus · Accepted Answer

Normal profit occurs when a firm's total revenues are equal to its total costs, including both explicit and implicit costs.

If a Firm Earns Normal Profit, Then It Has Generated