In a perfectly competitive market, what is normal profit considered to be?

In a perfectly competitive market, normal profit is the minimum level of profit needed for a business to stay in operation. It occurs when a company's total revenue equals its total costs, including both fixed and variable costs, as well as the opportunity costs of the owner's time and resources. This means the business is not making extra money beyond what it needs to keep running but is still covering all its expenses. For example, if a farmer grows tomatoes and earns just enough to pay for seeds, water, and his labor, he is making a normal profit. In this situation, the farmer is not losing money, but he is also not making any extra profit that would encourage him to expand or invest more in his business.