Supernormal profit is equal to:
A) total profit minus normal profit
B) normal profit minus average variable costs
C) total profit plus normal profit
D) normal profit plus average variable costs

Question

Quizplus · Accepted Answer

Supernormal profit is the profit over and above the normal profit, which is the minimum profit necessary to keep a firm in business. Therefore, it is calculated as total profit minus normal profit.

Supernormal Profit Is Equal To