To receive a normal profit, the firm described above would have to

Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property, and $35,000 in interest costs on capital. The owner/manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere. The firm earns revenues of $360,000 per year.
To receive a normal profit, the firm described above would have to

  Experience $10,000 less in cost.
  Receive $90,000 more in revenue.
  Receive $10,000 more in revenue.
  Do nothing since it already earns a normal profit.

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