Why Does The Economist Classify Normal Profit As A Cost?


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Anonymous Profile
Anonymous answered
Good try Oddman. Normal profits are implicit costs that a business owner must pay. These implicit costs are costs that come from using their owned resources. Unfortunately, I can't explain why economist classify 'normal profit' as a cost.
Oddman Profile
Oddman answered
Because the consumer pays it, as they do any other cost component of the product or service.

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