Normal profit is the minimum amount of profit a business needs to earn to stay in operation. It
Tag: firm theory
marginal revenue
Marginal revenue (MR) is the extra income a business earns by selling one additional unit of a product.
economies of scale
Economies of scale occur when a company lowers its costs by increasing the amount of goods it produces.
marginal cost
Marginal cost (MC) is the extra cost a business pays to produce one additional unit of a product.
supernormal profit
Supernormal profit (also known as abnormal profit or economic profit) is the profit a business earns that goes