the return of investment that is just sufficient to satisfy the owner of a business is called?

Assessment: WAEC SSCE - Economics - 2007 (Objective) Subject: Economics

Question 1 Report

the return of investment that is just sufficient to satisfy the owner of a business is called?
Answer Details
The return of investment that is just enough to make a business owner satisfied is called "normal profit." It is the minimum amount of profit required to keep the business running and compensate the owner for their time and effort. Normal profit takes into account the opportunity cost of the owner's time and capital, which means the amount they could have earned by investing their resources elsewhere. Normal profit is different from economic profit or excess profit, which represents the profit earned over and above the normal profit level.

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