Question

The excess of average profit over the normal profit is called

Hint:

Superprofit is the excess of average profit over the normal profit and is used to calculate goodwill in the partnership.

Answer 1

Correct Answer: 1

Step 1: Define superprofit.
Superprofit refers to the excess of actual profit over normal profit, where normal profit is the return on investment that justifies the use of resources in a business.
Step 2: Concept of abnormal profit.
Abnormal profit refers to the extra profit earned over and above normal profit, but it is not the same as superprofit, which is calculated after considering the average profit.
Step 3: Conclusion.
Thus, the correct answer is (A) Superprofit. Final Answer: \[ \boxed{\text{Superprofit}} \]