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    Hi this is an economics question!
    I’m just confused about the difference between normal profits and break-even point.
    My guess is that you get normal profits when AC=AR at the sales maximising point.
    Break-even point occurs when TR=TC. Is that correct?
    Also any other useful info on this topic would be greatly appreciated 👍
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    (Original post by Rose24)
    Hi this is an economics question!
    I’m just confused about the difference between normal profits and break-even point.
    My guess is that you get normal profits when AC=AR at the sales maximising point.
    Break-even point occurs when TR=TC. Is that correct?
    Also any other useful info on this topic would be greatly appreciated 👍
    It’s the same thing
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    The break even point is when total costs is equal to total revenue. So you are neither losing money nor gaining money. Profit is when your total revenue is higher than your total costs so you are gaining more money than what you are losing.
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    (Original post by cj_sS)
    The break even point is when total costs is equal to total revenue. So you are neither losing money nor gaining money. Profit is when your total revenue is higher than your total costs so you are gaining more money than what you are losing.
    He asked about normal profit not profit, normal profit is just the same thing as break even point you are operating at the minimum level required to stay in the industry so you aren’t making a loss or a profit
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    Normal profit = zero economic profit or you are operating at minimum average total cost
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    Thanks for the answers!
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    They are both the same, just different terms. For economist, it is normal profit and for an accountant it is break-even point.
 
 
 
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