It is neither very high nor very low
It is minimum acceptable to the producer
It is minimum which buyer wants to pay
It is the maximum allowed by government
✅ The correct answer is B.
Normal profit is called normal because It is minimum acceptable to the producer. Normal profit is a situation where a firm makes sufficient revenue to cover its total costs and remain competitive in an industry.
Normal profit is called normal because It is minimum acceptable to the producer. Normal profit is a situation where a firm makes sufficient revenue to cover its total costs and remain competitive in an industry.