FINAL CERTIFICATION SCRIPT 2026
INDEPTH QUESTIONS AND EXPERTLY
DEFINED CORRECT ANSWERS GRADED A+
⩥ Supernormal profit. Answer: AR > AC
⩥ Normal profit. Answer: AR = AC
⩥ Subnormal profit (loss). Answer: AR < AC
⩥ Marginal cost. Answer: ∆TC / ∆TQ
⩥ Marginal revenue. Answer: ∆TR / ∆TQ
⩥ Average cost. Answer: TC / Q
⩥ Fixed cost. Answer: Costs that do not change as output changes, e.g.
rent
⩥ Variable costs. Answer: Costs that change as output changes, e.g. raw
materials