Normal Profit
Plain definition
The minimum profit needed to keep an entrepreneur in the current business — equal to the total implicit opportunity cost, and equivalent to zero economic profit.
In economics
In economics, 'normal' profit is not average or mediocre profit; it is the profit that exactly covers the owner's forgone alternatives. Because it is counted as part of economic cost, a firm earning normal profit has zero economic profit, and resources stay put — this is the resting point of long-run perfect competition.
Example
If the owner's best alternative would pay 60,000 in the business is normal profit — there is no reason to leave.
Normal profit is confused with zero accounting profit. Zero accounting profit means revenue just covers cash expenses; normal profit is a positive dollar amount (the forgone alternatives) that leaves economic profit at zero. A firm earning normal profit is succeeding, not failing.