- Abnormal profit
economicssupernormal profit, also called economic rent, abnormal profit or pure profit or excess profits, is a profitexceeding the normal profit. Normal profit equals the opportunity costof labour and capital, while supernormal profit is the amount exceeds the normal return from these input factors in production.
Abnormal profit is usually generated by an
oligopolyor a monopoly; however, these firms often try to hide this from the market to reduce risk of competition or antitrust investigation.
In principle there are three kind of supernormal profit:
Excess profits tax
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