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what is the difference between normal , abnormal profirt ?

Profit can be defined as excess of total revenue over total cost (profit = TR - TC).  A normal profit means a firm’s revenue is exactly equal to its cost( i.e a firm is neither making profits nor losses). It is acondition of zero profit (TR=TC). On the other hand if there is any difference in the revenue over cost usually revenue being more than the cost, then it is said to be abnormal profit (TR>TC). In a perfectly competitive market, a company is assumed to earn normal profits only while in imperfect competition market, firms make some abnormal profits.

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normal profit= profit which is gain in the uniform form of market -- this typpe of profit ensure the long term business of firm. abnormal profit= gain in short time of business . they type is business run only for short time

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normal profit means the total revenue earned is exactly equal to cover the respective cost i.e. variable and fixed costs. this profit ensures to exixt in production activity.

and abnormal profit means excess of revenue over costs..

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