What is meant by capitalisation of super profit ??
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Capitalisation of super profit refers to 'capital valuation of the super profit'. Super profit is the extra profit earned by a firm over normal profit. ... So, in order to earn profit equal to Firm A, Firm B needs extra amount of capital. This extra amount of capital is to be calculated by capitalising the super profit.
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Capitalisation of super profit refers to 'capital valuation of the super profit'.
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