What is super-normal profit in the long run?

Super-normal profit, also known as economic profit, occurs when a firm's total revenue exceeds its total costs, including both explicit and implicit costs. In the long run, in a competitive market, super-normal profits attract new entrants, increasing supply and driving down prices until profits normalize to a level where only normal profit is achieved. This process ensures that resources are allocated efficiently, as firms in competitive markets cannot sustain super-normal profits indefinitely. Ultimately, the long-run equilibrium results in firms earning just enough to cover their opportunity costs.