Types of profits
- Normal Profits:-This is the profit which is earned by the entrepreneur which prevents him to move to the next occupation i.e. it is the payment to ,the entrepreneur which equates the supply of demand for the entrepreneur.
- Super normal Profit.-These are profits which the entrepreneur earns over and above what is necessary to keep an entrepreneur in a present-occupation. It is the reward normally enjoyed by fixed factors.
- The Monopoly Profits:-These are profits which entrepreneurs under monopoly or imperfect market situations enjoy by pushing the price of their product upwards
- Windfall profits:- This is profit earned by entrepreneurs because the price of his products have risen due unanticipated situation.