NAMA : AJAT NURHIDAYAT

NIM : 030147652
TUGAS 3 BAHASA INGGRIS NIAGA

Dear all students, please answer the following answer :

1. What is the meaning of profit ?
2. What is the meaning of normal profit ?
3. What is the meaning of excess profit ?

ANSWER :
1. Profit is the reward for risk taken by enterprise, the fourth of the factors of production,
what is left after all others costs, including rent, wages and interest. Put simply, profit is a
firm’s total revenue minus total cost.
2. Normal profit is the opportunity cost of the entrepreneur, the amount of profit just
sufficient to keep the firm in business. If profit is any lower than that, then enterprise
would be better off engaged in some alternative economic activity.
3. Excess profit, also known as super-normal profit, is profit above normal profit and is
usually evidence that the firm enjoys some market power that allows it to be more
profitable than it would be in a market with perfect competition.