The minimum rate of return or payment necessary to keep an entrepreneur in some specific enterprise is referred to as

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The minimum rate of return necessary to keep an entrepreneur in some specific enterprise is referred to as normal profit. Normal profit is the minimum amount of profit needed to cover opportunity costs and keep the entrepreneur in business. It is distinct from economic profit, which takes into account not only the opportunity costs but also any excess profit above the normal profit level. The pure rate of interest and real interest rate are related to borrowing and lending activities, not entrepreneurship.

The Minimum Rate of Return or Payment Necessary to Keep