ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A business can stay in business if it has zero economic profit.

Detailed explanation-2: -Normal profit is a crucial factor that businesses need to consider in order to remain competitive in their industry. Normal profit is a situation in which the revenue a business generates is equal to its total costs. Normal profit is frequently thought of when considering economic profit as well.

Detailed explanation-3: -Economic and Normal Profit A business will be in a state of normal profit when its economic profit is equal to zero, which is why normal profit is also called “zero economic profit.” Normal profit occurs at the point where all resources are being efficiently used and could not be put to better use elsewhere.

Detailed explanation-4: -An economic profit is the difference between the revenue received from sales and the explicit costs of producing its goods and services, as well as any opportunity costs. Opportunity costs are a type of implicit cost determined by management and will vary based on different scenarios and perspectives.