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3 Cards in this Set
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Normal profit |
AC=AR The minimum level of profit required to keep factors of production in their current use in the long run. Reflects opp cost. |
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Subnormal profit |
Loss in profits ; AC>AR or AR |
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Supernormal profit |
Abnormal profits ; AR < AC
Is any profit achieved in excess of normal profit - also known as supernormal profit. Persists in the long run in imperfectly competitive markets |
