what is normal profit 
normal profit is a profit metric that takes into consideration both explicit and implicit costs it may be viewed in conjunction with economic profit normal profit occurs when the difference between a company s total revenue and combined explicit and implicit costs are equal to zero investopedia sydney burnsunderstanding normal profitnormal profit is often viewed in conjunction with economic profit normal profit and economic profit are economic considerations while accounting profit refers to the profit a company reports on its financial statements each period normal profit and economic profit can be metrics an entity may choose to consider when it faces substantial implicit costs economic and normal profiteconomic profit is the profit an entity achieves after accounting for both explicit and implicit costs economic profit revenues explicit costs implicit costsnormal profit occurs when economic profit is zero or alternatively when revenues equal explicit and implicit costs total revenue explicit cost implicit cost 0ortotal revenue explicit implicit costsimplicit costs also known as opportunity costs are costs that will influence economic and normal profit a business will be in a state of normal profit when its economic profit is equal to zero which is why normal profit is also called zero economic profit normal profit occurs at the point where all resources are being efficiently used and could not be put to better use elsewhere when substantial implicit costs are involved normal profit can be considered the minimum amount of earnings needed to justify an enterprise unlike accounting profit normal profit and economic profit take into consideration implicit or opportunity costs of a particular enterprise 