Profit, normal profit and loss
Profit, normal profit and loss
Economic (supernormal) profit is the amount by which a firm's total revenue exceeds its total cost, including normal profit. It is calculated using the following formula:
Step-by-step lessons covering AQA A Level Economics 1.4.7 Profit for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.