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Abnormal profit is a profit of a firm over and above what provides its owners with a normal (market equilibrium) return to capital.
In economics, abnormal profit, also called excess profit, supernormal profit or pure profit, is "profit of a firm over and above what provides its owners with a normal (market equilibrium) return to capital." Normal profit (return) in turn is defined as opportunity cost of the owner's resources.
this depend on the business nature, industry type i.e. we have more than one situations to have such incident each are due to diffirent causes
An abnormal profit exceeds the normal opportunity for profitderived from labor costs and capital and considered normalprofit
n abnormal profit exceeds the normal opportunity for profitderived from labor costs and capital and considered normalprofit. Abnormal profit in a business consists of monopoly and oligopoly profits. Also called supernormal profit, pureprofit and excess profit.
Abnormal profit are Profits generated in a long run process where the total or marginal cost of production tends to reduce or much lower when compared to Average Revenue.
when total revenue > total cost
that called abnormal profit
When Actual profit is higher than the expected profit it is called abnornal profit
Abnormal Profit is earned when total revenue is greater than the total costs.
Abnormal Profit can be said to be a profit exceeding the normal profit.
هل تحتاج لمساعدة في كتابة سيرة ذاتية تحتوي على الكلمات الدلالية التي يبحث عنها أصحاب العمل؟