|
|
normal profit| Level of profit below which a firm would switch its resources into the production of other goods and services. If firms in a competitive industry are earning abnormal profit, which is profit greater than normal profit, then new firms will be attracted into the industry. If, on the other hand, firms in an industry are making less than normal profit, they will leave the industry, either entering another industry or simply closing down. |
How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
?Sign in  |
|---|
|
|
|