Principles of Microeconomics / Unit 6 MIC 0505 short lesson, about 20 seconds
Normal Profit
Captions available
The idea
Normal profit is the accounting profit that makes economic profit exactly zero: enough to cover every implicit cost, so the owner does as well here as anywhere else.
In practice
Zero economic profit means the owner is being paid what her resources are worth.
Where people slip
Neither source names the term; the course defines it here because unit seven's long run turns on it.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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