Question : Capital employed by a firm is Rs.5,00,000. Its average profit is Rs.60,000. The normal rate of return in similar type of business is 10%. The amount of super profits is:
Option 1: Rs.50,000
Option 2: Rs.10,000
Option 3: Rs.6,000
Option 4: Rs.56,000

Question

Question : Capital employed by a firm is Rs.5,00,000. Its average profit is Rs.60,000. The normal rate of return in similar type of business is 10%. The amount of super profits is:

Option 1: Rs.50,000

Option 2: Rs.10,000

Option 3: Rs.6,000

Option 4: Rs.56,000

Team Careers360 · Accepted Answer

Correct Answer: Rs.10,000

Solution : Normal Profit = Capital employed X Normal rate of return = Rs.5,00,000 X 10% = Rs.50,000
Average Profit = Rs.60,000
Super Profit = Average Profit - Normal Profit = Rs.60,000 - Rs.50,000 = Rs.10,000
Hence, the correct option is 2.

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Question : Capital employed by a firm is Rs.5,00,000. Its average profit is Rs.60,000. The normal rate of return in similar type of business is 10%. The amount of super profits is:Option 1: Rs.50,000Option 2: Rs.10,000Option 3: Rs.6,000Option 4: Rs.56,000

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Question : Capital employed by a firm is Rs.5,00,000. Its average profit is Rs.60,000. The normal rate of return in similar type of business is 10%. The amount of super profits is:
Option 1: Rs.50,000
Option 2: Rs.10,000
Option 3: Rs.6,000
Option 4: Rs.56,000