In economics,a firm earns a normal profit when its total revenue equals its total economic costs.

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A normal profit is different from an economic profit, which takes into account not only explicit costs (such as wages and materials) but also implicit costs (such as the opportunity cost of the entrepreneur's time and resources). In contrast, a normal profit only covers the explicit costs of running the business, meaning that the firm is just breaking even and not earning any extra profit. Thus, when a firm earns a normal profit, its total revenue is exactly the same as its total economic costs.

In Economics,a Firm Earns a Normal Profit When Its Total