What Is Normal Profit in Economics?


Normal profit in economics is when economic profit is equivalent to zero. The normal profit is considered the minimum level that a company must maintain in order to remain competitive. the difference between total cost and total revenue also defines normal profit.
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Normal Profit
When economic profit is equal to zero; this occurs when the difference between total revenue and total cost (explicit and implicit costs) equals zero. Normal profit is different than accounting profit because opportunity cost is taken into considerat... More »
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