C is the ans.
when your revenue is more then your your cost so it is super normal profit.
but when your revenue is equle to cost it is normal profit and zero economic profit.

Supernormal profits occur when the average revenue is more than the average cost. Let's break down this answer and understand it in detail.

1. Understanding Total Revenue and Total Cost:
- Total revenue refers to the total amount of money a firm receives from selling its products or services.
- Total cost refers to the total expenses incurred by a firm in producing its goods or services. It includes both fixed costs and variable costs.

2. Understanding Average Revenue and Average Cost:
- Average revenue is the revenue per unit of output. It is calculated by dividing the total revenue by the quantity of output.
- Average cost is the cost per unit of output. It is calculated by dividing the total cost by the quantity of output.

3. Supernormal Profits:
- Supernormal profits, also known as economic profits, occur when a firm's total revenue exceeds its total cost.
- In other words, when a firm earns more revenue than the total expenses incurred in producing its goods or services, it generates supernormal profits.

4. Average Revenue vs Average Cost:
- Average revenue represents the price at which a firm sells its products or services. If the average revenue is higher than the average cost, it means that the firm is earning more revenue per unit of output than the cost incurred in producing that unit.
- This situation leads to supernormal profits because the firm is able to cover all its costs and still have additional revenue left over.

5. Importance of Average Revenue exceeding Average Cost:
- When average revenue exceeds average cost, it indicates that the firm has a competitive advantage in the market. It is able to charge a price higher than its cost of production, resulting in higher profits.
- This competitive advantage could be due to various factors such as unique products, strong brand image, superior technology, or economies of scale.

In conclusion, supernormal profits occur when a firm's average revenue is more than its average cost. This indicates that the firm is able to generate higher revenue per unit of output than the cost incurred in production, leading to additional profits. It is a desirable situation for a firm as it indicates a competitive advantage in the market.