Normal profit is:

A) determined by subtracting implicit costs from total revenue.
B) determined by subtracting explicit costs from total revenue.
C) the return to the entrepreneur when economic profits are zero.
D) the average profitability of an industry over the preceding 10 years.

Normal Profit

The minimum amount of earnings that entrepreneurs must achieve to cover the cost of operating, essentially the breakeven point beyond which a business earns profit.

Implicit Costs

Indirect expenses related to business operations, such as opportunity costs, not directly paid out in cash.

Economic Profits

The excess of total revenue over total costs, including both implicit and explicit costs.