Question

Super-profit is equal to ______ less ______.

Options

• Actual Profit; Normal Profit

• Normal Profit; Actual Profit

• Average Profit; Net Assets

• Assets; Outside Liabilities

Answer 1

Super-profit is equal to actual profit less normal profit.

Explanation:

Super-profit is the excess profit earned by a firm over and above the normal expected profits of similar firms in the same industry.

Formula:

Super-profit = Actual (or Average) Profit − Normal Profit