Normal profit is a(n)________ cost because ________.
A) implicit; it represents the cost of not running another firm
B) explicit; a firm must pay income taxes on its profit
C) implicit; it represents the cost of economic depreciation
D) accounting; wages are considered an explicit cost
E) depreciation; the equipment the firm owns wears out over time

Question

Quizplus · Accepted Answer

Normal profit is considered an implicit cost because it represents the opportunity cost of not utilizing resources in their next best alternative use, such as investing in another business.

Normal Profit Is A(n)________ Cost Because ________

Normal Profit Is A(n) Cost Because