Why must normal profits be counted as a cost, according to economists?
Please provide the best answer for the statement.
Normal profit is the implicit cost of doing a particular business. It represents the forgone entrepreneurial income you would have received doing another business. If you don’t receive an equivalent or greater income to your normal profit, you would face the incentive to change businesses.
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The problem of scarcity means that people face trade-offs. Which of the following trade-offs are the concern of microeconomics?
A. Trade-offs faced by firms in what goods to produce B. Trade-offs faced by consumers in the purchase of goods C. Trade-offs faced by workers between work and leisure D. all of the above
In a monopoly market, setting a high price results in higher demand
a. True b. False Indicate whether the statement is true or false