Normal profit is defined as a. accounting profit b. economic ...

[karateprodigy]

Normal profit is defined as
 a. accounting profit
  b. economic profit
  c. profit necessary to ensure that opportunity costs are covered
  d. accounting profit minus economic profit
  e. economic profit minus accounting profit

Question 2

Suppose Ben buys out Jerry's ownership in the firm but retains him as a salaried employee. If so,
 a. economic profit increases
  b. economic profit decreases
  c. there is no change in economic profit
  d. there is no change in accounting profit
  e. accounting profit increases

[brittrenee]

Answer to Question 1

C

Answer to Question 2

C

[karateprodigy]

Thank you

[brittrenee]

Happy to help you