Ravi K and super normal profits

Monday, 9 February 2015 00:00 -     - {{hitsCtrl.values.hits}}

In his udget speech, the Minister of Finance referred to firms which have made “super normal profits.” There seems to be a lack of understanding of the phrase “super normal profits”. They are any profits above that required to stay on in business, with the opportunity cost of capital also covered. There is no connotation of ill-gotten profits or even excessive profits implied by super normal profits. Most firms make super normal profits. “Super” does not mean very large, unusual, or excessive, and “normal” does not mean average, or the norm. The phrase “super normal profit” was used in a bygone era. The correct phrase to use is “economic profit”. Like elsewhere in the world, most Sri Lankan firms make economic profit. These profits are not necessarily (in most cases) excessive or ill-gotten. Economicus

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.

COMMENTS

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.