Above-normal Profit

… a core term used in Economic Analysis and Atlas102

Definition

Also known as Excess Profit and Super-normal Profit.

The Economist (reference below) defines excess profit as is profit above normal profit and is usually evidence that the firm enjoys some market power that allows it to be more profitable than it would be in a market with perfect competition.

Atlas topic, subject, and course

Producer Theory and Competition (core topic) in Economic Analysis and Atlas102 Economic Analysis.

Sources

The Economist, Profit, Economics A-Z, at http://www.economist.com/economics-a-to-z/p#node-21529475, accessed 7 May 2016.

Page created by: Ian Clark, last modified 7 May 2016.