Answered: Explain the concept of Super normal…

Explain the concept of Super normal Profit, Normal Profit and Sub Normal Profit in perfect competition in short run and Long run.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 7P

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Q . Explain the concept of Super normal Profit, Normal Profit and Sub Normal Profit in perfect competition in short run and Long run.

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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