Economics B A-Level
Supernormal profit
What Supernormal profit means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Supernormal profit
Check what you remember
Read the wording for your board, then hide it and explain Supernormal profit in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Profit earned by existing firms in a market that signals an opportunity, incentivising new firms to enter.
Topics that use Supernormal profit
- Profit and loss (Pearson Edexcel A-Level)
Related terms
- Financial performance
- Gross profit margin
- Market entry
- Market exit
- Operating profit
- Operating profit margin
- Profit for the year margin
- Profitability
Using Supernormal profit in the exam
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