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Is it normal to have a negative economic profit? Explain.

Sagot :

Answer:

When the economic profit equals zero (break even point) as a result of the difference between total revenue and total cost, normal profit arises. If the amount is greater (positive value) than zero, then economic profit arises. On the contrary, if the amount is lesser (negative value) than zero, then this is a state of economic loss.

Explanation:

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