Economics GCSE
Normal profit
What Normal profit means in Economics GCSE, as defined for AQA.
Definition of Normal profit
Check what you remember
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Reference: AQA
The level of profit that individual firms' falling profit margins decrease to in a competitive market as prices fall.
Topics that use Normal profit
- Competitive markets (AQA GCSE)
Related terms
- Barriers to entry
- Competitive market
- Competitive markets
- Consumer choice
- Efficiency and cost management
- Non-price competition
- Price takers
- Price competition
Using Normal profit in the exam
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