Question

9. Normal profit is
*
1 point
O
(a) average profit earned
(b) profit earned by similar companies in the
same industry
Ο Ο Ο
O (c) (a) and (b)
O (d) none of the above​

Answer 1

Explanation:

Super profit means, excess profit that can be earned by a firm over and above

the normal profit usually earned by similar firms under similar circumstances. In other words it is the excess of average profit over normal profit.

Super profit is calculated as follows:

Super profit = Average profit - Normal profit