Normal profit and the cost of capital are the same concept.

Name: Normal profit and the cost of capital are the same concept.
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Normal profit is the minimum return that a firm needs to make in order to stay in business. The cost of capital is the rate of return that a firm must pay to its investors in order to attract their capital. In a perfectly competitive market, normal profit and the cost of capital are the same concept.

Normal Profit and the Cost of Capital Are the Same