What is the meaning of NORMAL PROFIT?

NORMAL PROFIT is the opportunity cost of using entrepreneurial abilities in the production of a good, or the profit that could have been received by entrepreneurship in another business venture. Like the opportunity costs of other resources, normal profit is deducted from revenue to determine economic profit. It is, however, never included as an accounting cost when accounting profit is computed.

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APABarry Goldsmith. (2010). normal profit. Retrieved September 21, 2026, from http://smartdefine.org/normal_profit/definitions/1159335
ChicagoBarry Goldsmith. 2010. "normal profit" http://smartdefine.org/normal_profit/definitions/1159335 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, normal profit, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/normal_profit/definitions/1159335>.
MLABarry Goldsmith. "normal profit" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/normal_profit/definitions/1159335>