Normal profit is also known as zero profit.
Question
Normal profit is also known as zero profit.
Solution
Yes, that's correct. Normal profit, also known as zero economic profit, is a situation in economics where the total revenue of a business is equal to its total costs. This means that the business is just covering its costs and is not making any additional profit. This is considered normal because it is the minimum level of profit needed for a company to remain competitive in the market. If a company is not making a normal profit, it may choose to exit the market.
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