Tag Archives: Abnormal Profit

Abnormal Profit: Concept and How to Calculate

What it is: Abnormal profit, or abnormal profit (abnormal profit) occurs when a company earns a higher profit than normal profit. It occurs when total revenue exceeds total economic costs (implicit costs plus explicit costs). Also known as supernormal profit or economic profit. When firms in the market post abnormal profits, it attracts new entrants to enter the market. They increase… Read More »