Abnormal profits
Abnormal profits
Glossary of business
Definition of abnormal profits
Profits exceed the amount a firm must receive to carry on production. Also known as supernormal profit. If abnormal profits persist in an industry this will tend to attract new firms in, supply will increase, prices will fall and normal profits will be restored.
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Terminology about business
Job world
Definition and meaning of abnormal profits
Meaning of abnormal profits
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