If Harold runs a grocery store and is making a normal rate of return, we can infer that he is also making an economic profit.

Question

Quizplus · Accepted Answer

A normal rate of return is considered to be a break-even point in economic terms, where total revenues equal total costs, including opportunity costs. Economic profit, however, occurs when revenues exceed all costs, including both explicit and implicit costs. Therefore, making a normal rate of return does not imply making an economic profit.

If Harold Runs a Grocery Store and Is Making a Normal