If the Baloney Store earns more than a normal profit, its
A)economic profit must be greater than its accounting profit
B)economic profit is positive
C)economic profit is, therefore, equal to its accounting profit
D)accounting profit is zero
E)accounting profit is less than its economic profit

Question

Quizplus · Accepted Answer

Economic profit is the difference between total revenue and all of the explicit and implicit costs of production, including a normal rate of return. If the Baloney Store earns more than a normal profit, this means its economic profit is positive.

If the Baloney Store Earns More Than a Normal Profit