The Three Types of Profit
The Three Types of Profit
Economic profit compares a firm's average revenue with its average cost. At the profit-maximising output, the key test is whether ARARAR is greater than, equal to, or less than ACACAC.
Step-by-step lessons on CIE Intl A Level Economics 7.5.9 definition of normal, subnormal and supernormal profit. Each one builds up to exam-style questions.