In a price-taker market, if a business produces efficiently (i.e., that is, where marginal revenues = marginal costs), the firm will be able to make at least a normal profit. True of False. Explain....

In a price-taker market, if a business produces efficiently (i.e., that is, where marginal revenues = marginal costs), the firm will be able to make at least a normal profit.  True of False.  Explain.

All firms produce where MR=MC.  Price takers produce and price where P=ATC=MC=MR.  That is the "normal profit" level.  Profits above that level are considered "economic profits."  Review economic profits, normal profits, explicit costs, and implicit costs.

Why is 'normal profit' considered to be a cost, in economics?