Normal profit is a situation when any business earning equal to its costs, mean 100$ cost and 100$ income. this situation called normal profit
normal profit in economics is break even profit where your revenue equal to cost...and opportunity cost are included in cost...
don't confused with accounting profit where opportunity cost are not considered.
Normal profit is the minimum level of profit needed for a company to remain competitive in the market.
Normal profit typically equals opportunity cost.
Markets in which suppliers are getting normal profits will not expand/shrink.
Normal profit is a cost and it is included in total costs.
The profit a business makes out of running its business. Rent received, the sale of a motor car in a manufacturing company is extraordinary profit. (Added at the bottom of the income statement).
Peace.
