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    not at all - look at the terms. if you go in to an exam and need a word for 'above normal profits' you could use either abnormal or supernormal. however, if you were to describe a loss as 'abnormal profits' you can be almost certain you wouldn' gain the marks...
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    (Original post by TheWolf)
    from what you are saying it seems that you are saying that abnormal = above normal profit - but it isnt. abnormal = above normal profit or below normal profit.
    Abnormal profit is definitely profit over and above normal profit (hence not below!). Below normal profit is a loss. The firm is failing to meet a cost of production and cannot therefore be making profit of any kind. Texts and revision guides tend to agree on this one.
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    here i read definition from my Economics dictionary:

    Abnormal profit is when the profit of a firm is above or below normal profit

    TIP: A common error is to assume that abnormal and supernormal are synonymous and to forget that anything less than normal is also abnormal
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    Which only relates to the words "abnormal" and "supernormal", but not "profit". Just follow the convention.
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    (Original post by ZJuwelH)
    Which only relates to the words "abnormal" and "supernormal", but not "profit". Just follow the convention.
    HERE IS THE FULL DEFINITION :mad: :

    Abnormal profit: When the profit of a firm is above or below normal profit

    When profit is above normal, abnormal profit is described as supernormal profit or excessive profit; below normal profit is described as subnormal profit.

    TIP: A common error is to assume that abnormal and supernormal are synonymous and to forget that anything less than normal is also abnormal
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    Right, at school, we use supernormal and abnormal profit interchangeably.

    And thewolf is totally right, you can say both Subnormal profit or an Economic Loss, as far as I'm aware either is absolutely fine!
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    Uggh, not worth my precious ink...
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    (Original post by TheWolf)
    HERE IS THE FULL DEFINITION :mad: :

    Abnormal profit: When the profit of a firm is above or below normal profit

    When profit is above normal, abnormal profit is described as supernormal profit or excessive profit; below normal profit is described as subnormal profit.

    TIP: A common error is to assume that abnormal and supernormal are synonymous and to forget that anything less than normal is also abnormal
    What is your source?
    Anderton p.108 says "If firms in a perfectly competitive industry are able to make ABNORMAL PROFITS, profit which is greater than normal profits....."

    and in the Key Terms box it says "ABNORMAL PROFIT-the profit over and above normal profit"

    Hey, one min, when was your book published thewolf? Because they may have altered the meaning,...
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    (Original post by BossLady)
    What is your source?
    Anderton p.108 says "If firms in a perfectly competitive industry are able to make ABNORMAL PROFITS, profit which is greater than normal profits....."

    and in the Key Terms box it says "ABNORMAL PROFIT-the profit over and above normal profit"

    Hey, one min, when was your book published thewolf? Because they may have altered the meaning,...
    I don't think TheWolf refers to Anderton. I have the Third Edition which says the same.
 
 
 

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