Normal profit

Look through the text and fill in the gaps with the words given below.

Summarize the information of the text and render its essentials.

..(1).. a component of the firm's opportunity costs. The time that the owner..(2).. running the firm could be spent on running another firm. Normal profit is the..(3).. the entrepreneur can expect to earn or the profit that a business owner considers..(4).. to make running the business. When a firm..(5).. positive economic profits, we say returns to entrepreneurial ability are..(6)... In the short run, a firm earning subnormal profits (i.e. an economic loss) can continue to do..(7).. as long as revenues cover average variable costs. In a perfect market, positive economic profits cannot be..(8).. in the long run as more firms enter the market and increase competition.

An..(9).. profit arises when revenue exceeds the opportunity cost of inputs, noting that these costs..(10).. the cost of equity capital that is met by "normal profits."

All enterprises can be stated in financial capital of the..(11).. of the enterprise. The economic profit may include an element in recognition of the..(12)..that an investor takes. It is often uncertain, because of incomplete information, whether an enterprise will succeed or..(13)..

This extra risk is included in the minimum..(14).. of return that providers of financial capital require, and so is treated as still a cost within economics. The size of that return corresponds to the riskiness associated..(15).. each type of investment.

Risks, business, sustained, is, spends, economic, earns, with, return, supernormal, owners, include, rate, necessary, not.

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