Friday, October 2, 2015

Term of the Day: Normal Profit

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October 2, 2015
Normal Profit

Normal profit is an economic condition occurring when the difference between a firm's total revenue and total cost is equal to zero. Simply put, normal profit is the minimum level of profit needed for a company to remain competitive in the market.

Breaking It Down:

A business will be in a state of normal profit when its economic profit is equal to zero...

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