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What are two examples of the animals the Peruvian people raised for food?
Economic Profit
The profit a company makes after deducting both explicit (direct payments) and implicit (opportunity) costs.
Normal Profit
Normal profit is the minimum level of profit needed for a company to remain competitive in the market, equivalent to the opportunity cost of capital.
Purely Competitive Market
A market framework where numerous buyers and sellers exist, there's unrestricted access and departure, and the product is uniform, which results in participants accepting the market price as given.
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