If a firm's receipts are just sufficient to cover all of its economic costs, the firm is said to be earning a(n)
A) normal profit
B) implicit profit
C) explicit profit
D) economic profit

Question

Quizplus · Accepted Answer

Normal profit occurs when a firm's total revenues are exactly equal to its total economic costs (including both explicit and implicit costs), meaning the firm is covering all its costs but not making an economic profit beyond that.

If a Firm's Receipts Are Just Sufficient to Cover All