Which term describes the amount of revenue needed to cover the total costs of production, including opportunity costs?

The term that describes the amount of revenue needed to cover the total costs of production, including opportunity costs, is known as normal profits. Normal profits occur when a firm's total revenue is equal to the total costs, including both explicit costs (direct costs associated with production) and implicit costs (the opportunity costs of foregone alternatives). This means that the firm is covering all its costs and earning a return that is equal to the next best alternative use of those resources.

In economic terms, achieving normal profits is viewed as a state of equilibrium for a firm within a competitive market; it signifies that the firm is sustaining itself in the long run without experiencing economic gains or losses. When a firm earns exactly normal profits, it is essentially breaking even, which indicates that it has sufficient revenue to meet all its costs, including the opportunity costs of its resources.

The other terms presented have different meanings. Abnormal profits refer to profits that exceed normal profits, which indicate that a firm is generating surplus revenue beyond what is required to cover its costs. Marginal cost relates to the additional cost incurred from producing one more unit of output and does not encompass total costs. Variable costs are costs that change with the level of output, but they do not include opportunity costs or fixed costs