Economic Profit flashcards

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what is normal profit It is a cost because they represent payments made for the resources which the businessperson owns and supplies in his or her own enterprise
what is a firm's economic profit It is a profit over and above that which it needs to compensate for the time and other resources the owner supplies to the business.
Economic profit not an economic cost because it need not be realized for a business to acquire and retain entrepreneurial ability
Give an example of economic cost wages, rents, normal profits
If competitive industry Z is making substantial economic profit, output will _____ expand, product price will fall, and economic profit will disappear

what is normal profit

what is a firm's economic profit

Economic profit not an economic cost because

Give an example of economic cost

If competitive industry Z is making substantial economic profit, output will _____

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