Difference between revisions of "Economic profit"
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According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | ||
:[[Economic profit]]. Total revenues minus all of the firm's costs, including opportunity costs. | :[[Economic profit]]. Total revenues minus all of the firm's costs, including opportunity costs. | ||
| − | + | According to [[Macroeconomics by Mankiw (7th edition)]], | |
| + | :[[Economic profit]]. The amount of revenue remaining for the owners of a firm after all the factors of production have been compensated. (Cf. accounting profit, profit.) | ||
[[Category: Economics]][[Category: Articles]] | [[Category: Economics]][[Category: Articles]] | ||
Latest revision as of 14:39, 2 July 2020
Economic profit is total revenues minus all of the firm's costs, including opportunity costs.
Definition
According to Principles of Economics by Timothy Taylor (3rd edition),
- Economic profit. Total revenues minus all of the firm's costs, including opportunity costs.
According to Macroeconomics by Mankiw (7th edition),
- Economic profit. The amount of revenue remaining for the owners of a firm after all the factors of production have been compensated. (Cf. accounting profit, profit.)
