Normal profits are regarded as a cost (and are included in the cost curves). Explain why. What determines the size of normal profit? Will it vary with the general state of the economy? A firm will...

Normal profits are regarded as a cost (and are included in the cost curves). Explain why. What determines the size of normal profit? Will it vary with the general state of the economy? A firm will continue producing in the short run even if it is making a loss, providing it can cover its variable costs. Explain why. Just how long will it be willing to continue making such a loss?