Question

Normal profit depends on
a) Average capital employed
b) N.R.R.
c) F.M.P.
d) both a & b​

Answer 1

Answer:

d) both a & b

Explanation:

hope it would helps✌✌✌

Answer 2

The correct answer is option (d) both a & b​.

Explanation:

• Normal profit depends on both Average capital employed and N.R.R.
• The formula of Normal Profit is: Normal Profit = Capital Employed X Normal Rate of Return/100.
• A profit metric that takes into consideration both explicit and implicit costs is referred as Normal profits.
• It occurs when the difference between a company's total revenue and combined explicit and implicit costs are equal to zero.
• Hence, the correct answer is both a & b.