Is Normal Profit a part of fixed cost or variable cost and why????
Dear student
Normal profit is an economic condition when difference between firm's total revenue and cost is zero. It is considered as part of fixed cost.
Total Cost = variable cost + Fixed Cost
Normal Profit is part of fixed cost.
Regards
Normal profit is an economic condition when difference between firm's total revenue and cost is zero. It is considered as part of fixed cost.
Total Cost = variable cost + Fixed Cost
Normal Profit is part of fixed cost.
Regards