Normal profit is defined as _____
A)cost of production minus revenue from sales.
B)economic profit plus accounting profit.
C)the profit necessary to ensure that opportunity costs are covered.
D)accounting profit minus economic profit.
E)economic profit minus accounting profit.

Question

Quizplus · Accepted Answer

Normal profit is the minimum profit required by a firm to remain in business and cover its opportunity costs. It is the amount of profit that would be earned in the best alternative use of the resources used by the firm. Thus, normal profit is the profit required to ensure that all factors of production are fully compensated for their opportunity cost.

Normal Profit Is Defined as _____