Question

Making zero economic profit, which includes implicit cost such as entrepreneurial talent,is also known as a(n)____________profit.

Answer 1

Normal profit is the term used to describe making zero economic profit, including implicit costs.

Step-by-step explanation:

The term you are looking for is normal profit.

Normal profit is the profit earned when a business makes zero economic profit, which includes both explicit costs (such as wages, rent, and materials) and implicit costs (such as entrepreneurial talent) in its calculations.

Normal profit indicates that a business is just covering its costs and is not experiencing above-average returns. It is often considered the minimum level of profit needed to keep a business running in the long term.