Explanation:

- Gross Profit: The difference between sales revenue and the cost of goods sold. It does not reflect a firm's other expenses.

- Normal Profit: The breakeven point where total revenues equal total costs, including opportunity costs. It signifies zero economic profit.

- Net Profit: The actual profit of a firm after all expenses, including taxes and interest, are deducted from total revenue.

- Supernormal Profit: Also known as economic profit, is when total revenue exceeds total costs, including opportunity costs. It indicates an above-normal return.

In this scenario, AR (Average Revenue) is Rs. 10 and AC (Average Cost) is Rs. 8.

- The firm earns Rs. 2 more per unit than it spends, indicating a profit exceeding normal levels.

Supernormal Profit