........... refers to difference between Average adjusted profit and Normal profit.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Super profit.
Super profit refers to Difference between Average adjusted profit and Normal profit.
Super profit is earned by a firm when there actual profit is more than the normal profit i.e. profit earned by a similar business. Actual profit is adjusted against any abnormal profit and loss to calculate the adjusted profit of that particular year and then adjusted profits of all years are averaged.