Normal Profit Is A(n)________ Cost Because ________

Multiple Choice

Normal profit is a(n) ________ cost because ________.

A) implicit; it represents the cost of not running another firm
B) explicit; a firm must pay income taxes on its profit
C) implicit; it represents the cost of economic depreciation
D) accounting; wages are considered an explicit cost
E) depreciation; the equipment the firm owns wears out over time