In a competitive market, a firm achieves _______ when its total revenue equals its total costs, including opportunity costs.

In a competitive market, a firm achieves normal profit when its total revenue is equal to its total costs, which also includes opportunity costs. This means that the money the firm makes from selling its products is just enough to cover all the expenses of running the business, as well as the costs of not pursuing other opportunities. For example, if a bakery earns $10,000 from selling bread but spends $10,000 on ingredients, rent, and wages, it is breaking even and earning normal profit. At this point, the bakery is not making extra money, but it is also not losing money, which allows the owner to stay in business without feeling the need to change their strategy. Normal profit is essential for firms because it indicates that they are using their resources efficiently in the competitive market.