Question

normal profit is _________

A. Average profit earned
B.Profit earned by similar
companies in same industry.
C. A and B
D. None of the above​

Answer 1

Answer:

hey mate your answer is here.

Explanation:

B) Profit earned by similar

Answer 2

Answer: Option B - Profit earned by similar companies in the same industry. Normal profit is an economic term in which business organizations and companies help to stay competitive with their competitors in the market.

Explanation:

1. To determine if a company has owned normal profit, first, we have to calculate its economic profit.

2. If the company's or the organization's total revenue is equal to its net costs, that means its economic gain is equal to zero, and the company is now in a position of normal profit.

3. Importance of normal profit- Establishing or developing a free market, Measuring a company's business performance, etc.