alleryStart learning →Normal profit is treated by economists as a component of:
AGovernment revenue
BExplicit wages
CEconomic profit
DImplicit costs
Answer & Solution
Correct answer: D. Implicit costs
It is the minimum return an owner could earn elsewhere, so it is counted among implicit costs and not as extra profit.
Keep practising Price-Output Determination under Different Market Forms
Browse all Price-Output Determination under Different Market Forms questions for CA Foundation, or explore more Business Economics topics.
Related questions
Critics say the perfect competition model wrongly shows all agents as:The equilibrium price of a perfectly competitive market is fixed where:Which markets come closest to perfect competition in practice?Which economic theorem says competitive equilibria are Pareto-efficient?In the short run, perfectly competitive firms are:A firm sells 200 units at Rs 50 each, with average cost of Rs 42 per unit. Its economic prWhat attracts new firms into a perfectly competitive industry?A monopoly has no supply curve because it has abandoned: