economic profit

economic profit formula

TR- TC: TR - explicit costs - implicit costs (opportunity cost)

accounting profit

TR- TC: TR - explicit costs

normal profit

minimum level of profit requires to keep FoP in their current use: AR = AC

supernormal profit

AR > AC

subnormal proft

AR < AC

shutdown condition

if AR = AVC, firm should consider shutting down and if AR < AVC, definitely shut down