what is normal profit
DEFINITION of 'Normal Profit'. Normal profit is an economic condition occurring when the difference between a firmâs total revenue and total cost is equal to zero. Simply put, normal profit is the minimum level of profit needed for a company to remain competitive in the market.Next Up.he method of determining whether a firm is in a state of normal profit can be represented in the following way: Total Revenue - (Explicit Expense + Implicit Expenses) = 0. If the difference between total revenue and total expenses is not equal to zero, the business in question is not in a state of normal profit.