Answer :
A normal profit is defined as a return to the entrepreneur.
What is a normal profit?
A normal profit is described as a minimum profit amount that is needed by businesses so that the business stays competitive and can operate effectively in a market. It is important to mention that the normal profit includes the deduction of the implicit and the explicit costs from the overall revenue of a company. The profit amount remains zero.
A normal profit is the amount of money that an entrepreneur can ask for because that entrepreneur is implementing the resources in his or her business. The resources used in the business do have an alternative value, and hence the entrepreneur considers their value as highly important.
It can be concluded that a normal profit is defined as a return to the entrepreneur.
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