In a perfectly competitive market, which of the following statements best describes the relationship between normal profit and business sustainability?

In a perfectly competitive market, normal profit is the minimum amount of profit needed for a business to stay in operation. This means that if a business earns exactly normal profit, it covers all its costs, including the opportunity cost of the owner's time and resources, allowing it to continue functioning without losing money. If a business makes less than normal profit, it may struggle to survive because it is not earning enough to justify its existence. For example, if a farmer grows crops and earns just enough to pay for seeds, equipment, and their own labor, they are at normal profit and can keep farming. Therefore, normal profit is essential for business sustainability in a competitive environment, as it ensures that businesses can continue to operate without financial loss.