Normal Profit

It means the earnings have been made in a state of perfect competition where all the resources are appropriately utilized and the level of gain can cover all the opportunity costs to keep the business running in the long run.  

In the graph of normal profit, the total revenue is equivalent to the sum of explicit and implicit costs.  Explicit indicates the expense made towards labor stimulus package, raw materials commodities, remunerations, and other variables that are essential to run the business, and implicit is the opportunity cost. 

The term is used in global economic and investment analytics to recognize if the sector or industry is improving or declining or is running competitively.