Normal profit, Microeconomics

Normal profit:

Normal profit is when total revenue is exactly equal to total cost when the latter includes both explicit costs. It is the type of profit when made by firms in an industry does not attract new firms into the industry even when no barriers to entry exist. Existing firms also do not leave industry also. The firm’s profit then is equal to the implicit costs.

Posted Date: 1/2/2013 11:50:53 PM | Location : United States







Related Discussions:- Normal profit, Assignment Help, Ask Question on Normal profit, Get Answer, Expert's Help, Normal profit Discussions

Write discussion on Normal profit
Your posts are moderated
Related Questions
I want to know all about equilibruim consumer equilibruim firms equilibruim nd market equilibruim technically also??

pooling in insurance

Use a PPF to explain the difference between actual and potential growth. The PPF shows possible output, taking into consideration all factors of production - but de facto outpu

group trend including ionic and atomic radii,electron affinity,electronegativity,charge density and ionization potential

When is the economic theory useless? One misunderstanding is to under-estimate the role of an economic theory. Several people thought an economic theory useless since they thin

The Concept of Efficiency is stated below: To illustrate this concept of the efficiency, it is used to expand the understanding of what is meant by the Pareto-efficient allocat

What is the difference between houehold and consumers?

Gross Domestic Product, Deflator: A price index that adjusts the overall value of GDP according to average increase in the prices of all output. GDP deflator equals the ratio of no

Closesubstitute goods: The number of closesubstitute goods The more substitutes of good has and the more close the substitutes are, the more elastic the demand for the good. Fo

Motives of regional financial institutions: There are mixed motives for the donor countries to provide development assistance to developing nations. While a desire for poverty