Normal economic pro?ts are:
A) the same as positive accounting pro?ts.
B) the average rate of return which can be gained in the economy.
C) positive for a competitive ?rm in the long run.
D) revenues less raw material costs, wages and depreciation.

Question

Quizplus · Accepted Answer

Normal economic profits are considered to be the average rate of return that can be expected from alternative investments in the economy. This is essentially the opportunity cost of capital.

Normal Economic Pro?ts Are