A firm's "normal profit" is best characterized by the
A. average of a firm's profits over the past five years.
B. amount of profit necessary to keep the price of a firm's stock from changing.
C. amount of profit a firm could earn in its next best alternative activity.
D. the average amount of profit earned in the firm's industry.
Answer:C
A firm's "normal profit" is best characterized by the
A. average of a firm's profits over the past five years. B. amount of profit necessary to keep the price of a firm's stock from changing. C. amount of profit a firm could earn in its next best alternative activity. D. the average amount of profit earned in the firm's industry.