The term ‘normal profit’ as used in the analysis of equilibrium of the firm under perfect competition, refers to

The term 'normal profit' as used in the analysis of equilibrium of the firm under perfect competition, refers to

Q. The term ‘normal profit’ as used in the analysis of equilibrium of the firm under perfect competition, refers to:

  1. Earnings of management
  2. Reward for enterprise
  3. Reward for innovation
  4. Residual income of a business

Answer: Earnings of management

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