Question

normal profit= ?what is the formula for normal profit​

Answer 1

Answer:

Normal profit occurs when economic profit is zero or alternatively when revenues equal explicit and implicit costs. Total Revenue - Explicit Cost - Implicit Cost = 0. or. Total Revenue = Explicit + Implicit Costs. Implicit costs, also known as opportunity costs, are costs that will influence economic and normal profit.

Answer 2

Answer:

Normal profit happens when the revenue realized is equal to the explicit and implicit costs combined or when the economic profit equates to zero. This also explains why normal profit is also referred to as zero economic profit. Economic Profit = Revenues – Explicit costs – Implicit costs.

Explanation: