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what's the best way to show tht the firm is to have normal profits in the long run?


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A bit more specific would help- but you could make a graph of the average sales / returns / profit- anything that indicates the relative business success, and attempt to draw a forecasted line? If the business falls below that, it could mean that the firm's profits are not normal in the long run.

Business student here, so I'm not big on economics graphs, sorry!

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I suppose if you have financial data you could base your graph on calculations from the AVC and all that :S

what kind of financial data? profit monthly? cost?

cause normal profit = is economic profit = 0

economic profit = revenue- explicit n implicit cost

where can i get implicit cost?

you know, i'm in the same situation.. i had planned to include this, but i haven't started my ee so i can't really be sure :P

but anyway, in my case i thought i could ask the firms to give me their financial data: profits, costs and all.. and then analyse whether there is a consistent match with the market form in my research question..

as far as implicit costs are considered, maybe talk to each firm and ask them of how they value their entrepreneurship and risk and all.. do you get it? because i'm not exactly sure of how i'll carry this out :P

Edited by MISHI
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