A normal profit is:

Correct Answer : A.

Zero economic profit means normal profit. Zero economic profit does not mean zero accounting profit. The accountant will calculate total cost using only explicit costs (basically a transfer of money) that the firm makes. On the other hand, economists will factor in opportunity cost as well. This all means that economists will calculate higher costs, which means that economic profit is lower than accounting profit. The firms under perfect competition in longrun will always earn zero economic profit due to large number of firms in industry, but actually they earn some positive amount of accounting profit.}