Question

differentiate between normal and abnormal profit

Answer 1

If a firm makes more than normal profit it is called super-normal profit. Super normal profit is also called economic profit, and abnormal profit, and is earned when total revenue is greater than the total costs. Total costs include a reward to all the factors, including normal profit.  If total revenue exceeds total expenses, it is called economic profit or, alternatively, super-normal profit or abnormal profit.

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Answer 2

in a firm makes more than normal profit it is called super normal profit. supernormal prifut also called economic profit, and abnormal profit and is earned when total revenue is greater than the total costs. total costs include a reward to all the factors, including normal profit.