Normal profit is
A)determined by subtracting implicit costs from total revenue.
B)determined by subtracting explicit costs from total revenue.
C)the return to the entrepreneur when economic profits are zero.
D)the average profitability of an industry over the preceding 10 years.

Question

Quizplus · Accepted Answer

Normal profit is the minimum level of profit needed for a company to remain competitive in the market, which occurs when economic profits are zero, meaning total revenue equals total costs (including both explicit and implicit costs).

Normal Profit Is