What is Normal Profit?Normal Profit is equal to the “Reasonable Rate of Return” for the market.Normal Profit is equal to the highest “opportunity cost” available to the producer even if that profit level is above the “Reasonable Rate of Return” for the marketEconomic Profit is Normal Profit minus what profit would have been at the highest opportunity cost. Economic Profit can be above, below or equal to Normal ProfitBoth A and C

Normal profit in economics refer to the situation where the total revenue of the firm is equal to…

Answered: What is Normal Profit? Normal Profit is…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.1: What Are Costs?

Problem 1QQ

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What is Normal Profit?

Normal Profit is equal to the “Reasonable Rate of Return” for the market.
Normal Profit is equal to the highest “opportunity cost” available to the producer even if that profit level is above the “Reasonable Rate of Return” for the market
Economic Profit is Normal Profit minus what profit would have been at the highest opportunity cost. Economic Profit can be above, below or equal to Normal Profit
Both A and C

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