Skip to content

Course home

3.3.4 Normal profits, supernormal profits and losses
x

Three profit outcomes

Three profit outcomes

Profit is the difference between total revenue and total economic cost: Profit=TR−TCProfit = TR - TCProfit=TR−TC. Total economic cost includes both explicit costs, such as wages and rent, and the entrepreneur's opportunity cost.

3.3.4 Normal profits, supernormal profits and losses Lesson

  1. A Level
  2. /Economics
  3. /3.3.4 Normal profits, supernormal profits and losses

Step-by-step lessons covering Edexcel A A Level Economics 3.3.4 Normal profits, supernormal profits and losses 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.