Why do economists consider normal returns to capital to be a cost? How does economic profit differ

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Why do economists consider normal returns to capital to be a cost? How does economic profit differ from normal profit?

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Economics Private And Public Choice

ISBN: 9780357133996

17th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

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Question Posted: Oct 17, 2023 10:01 AM

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Why do economists consider normal returns to capital to be a cost? How does economic profit differ

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Economists consider normal returns to capital to be a cost because it is a necessary expense that must be incurred in order to produce output Capital ...View the full answer

Economics Private And Public Choice

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