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Meaning of abnormal profits

 

 

 

Abnormal profits

 

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Business glossary

 

Meaning of term abnormal profits :

 

Profits exceed the amount a firm must receive to carry on production. Also known as supernormal profit. If abnormal profits persist in an industry this will tend to attract new firms in, supply will increase, prices will fall and normal profits will be restored.

 

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Abnormal profits

 

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Meaning of term abnormal profits

 

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