Question

Traders enjoy ………………… profit at equilibrium price :
(a) Normal
(b) Abnormal
(c) Lesser
(d) More

Answer 1

Explanation:

ur answer is option b) i.e. abnormal

Answer 2

Traders enjoy normal profit at the equilibrium price.

What are the characteristics of normal profit?

• It is the profit of less compensation that occurs if total costs and total revenues are equal
• If a company makes a normal profit then the economic profit of the company becomes zero
• Examples of normal profit are- Explicit cost, Implicit cost, and opportunity cost
• If the economic profit of any company is zero then the company makes a normal profit