normal profit, economic profit confusion ast, confusion, economic, passing

suyash1989

Hello everybody
I am reading micro econ analysis, perfect competition part and get some confuses of terminologies “normal profit” and “economic profit”. It says “economic profit equals total revenues less the opportunity cost of production, which includes the cost of a normal return to all factors of production, including invested capital” is very clear to understand.
However, in the context of distinguishing between the firm’s and the industry’s shortrun curve it follows some explain as following:
* Price takers will produce where P=MC=MR=ATC (in the short term) to maximize profit
* Firm will continue operating at the price P1