The minimum level of profit that is needed to keep a firm in the existing business is

normal profit

The correct answer is Option 2: normal profit

• Normal Profit: Normal profit is the minimum level of profit required to keep a firm in its current business.

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  It represents the opportunity cost of the firm's resources.

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  It includes the return that the firm's owners could earn by investing their resources elsewhere.

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  If a firm earns less than normal profit, it would be better off using its resources in an alternative venture.