Normal profit is a part of total cost . Is it true?
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Answer:
true
Explanation:
In economics total cost includes normal profits. Normal profits is a part of implicit cost which includes the opportunity cost of working somewhere else.
normal profits are the percentage of capital that a producer expects from his business. If producer would not be able to earn normal profits he'll not be able to survive in the industry.
normal profits are earned when total cost is equal to total revenue.
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