[amp_mcq option1=”It is neither very high nor very low” option2=”It is minimum acceptable to the producer” option3=”It is minimum which buyer wants to pay” option4=”It is the maximum allowed by government” correct=”option2″]<\/p>\n
The correct answer is: B. It is minimum acceptable to the producer<\/strong>.<\/p>\n Normal profit is the minimum amount of profit that a firm must make in order to stay in business. It is the amount of profit that is necessary to cover the firm’s costs of production, including the cost of labor, materials, and other expenses. If a firm does not make at least normal profit, it will eventually go out of business.<\/p>\n Option A is incorrect because normal profit is not necessarily neither very high nor very low. It can be any amount of profit that is necessary to cover the firm’s costs of production.<\/p>\n Option C is incorrect because the minimum amount that a buyer is willing to pay is not necessarily the same as the normal profit. The minimum amount that a buyer is willing to pay is the price that they are willing to pay for the good or service, while the normal profit is the amount of profit that the firm must make in order to stay in business.<\/p>\n Option D is incorrect because the maximum amount of profit that is allowed by the government is not necessarily the same as the normal profit. The maximum amount of profit that is allowed by the government is the amount of profit that is set by law, while the normal profit is the amount of profit that is necessary to cover the firm’s costs of production.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”It is neither very high nor very low” option2=”It is minimum acceptable to the producer” option3=”It is minimum which buyer wants to pay” option4=”It is the maximum allowed by government” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-45224","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n