If a pizza joint earns only a normal profit this year,its _____
A)economic profit is equal to its accounting profit.
B)economic profit is zero.
C)economic profit is equal to the average accounting profit in other industries.
D)accounting profit is zero.
E)accounting profit is less than its economic profit.

Question

Quizplus · Accepted Answer

A normal profit means that the company is earning just enough to cover all its expenses, including opportunity costs. This means that economic profit is zero. Accounting profit may still be positive.

If a Pizza Joint Earns Only a Normal Profit This