Which of the following statements does NOT correctly characterize normal profit?
A) It is part of a firm's opportunity cost.
B) It is equal to a firm's total revenue minus its opportunity cost.
C) It is the average return for supplying entrepreneurial ability.
D) None of the above because all the statements correctly characterize normal profit.

Question

Quizplus · Accepted Answer

Normal profit is not equal to a firm's total revenue minus its opportunity cost; rather, it is the minimum profit necessary for a company to remain competitive in the market, covering opportunity costs and ensuring the firm continues operations.

Which of the Following Statements Does NOT Correctly Characterize Normal