The amount remaining after subtracting from the total income of a company the total monetary cost of all business activities, as well as the opportunity cost of profits that could have been made by investing resources in alternative business activities. The economic profit measures both the financial status of the firm, and the effectiveness of the firm's decision-making strategies.
Related information about economic profit:
- Economic Profit (Or Loss) Definition | Investopedia
The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used. This can be used as another name for ...
- Profit (economics) - Wikipedia, the free encyclopedia
Economic profit does not occur in perfect competition in long run equilibrium; if it did, there would be an incentive for new firms to enter the industry, aided by a ...
- Economic Profit - Financial Dictionary - The Free Dictionary
What Does Economic Profit (or Loss) Mean? The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used.
- Economic Profit vs Accounting Profit | Microeconomics | Khan ...
Difference between a firm's accounting and economic profit.
- How to Calculate Economic Profits | Chron.com
Economic profit is a measure of cost beyond accounting profit. Accounting profit is the money made after all expenses have been paid. It accounts only for actual ...
- Economic Profit Vs. Accounting Profit
A lot of people get confused about the difference between economic profit and accounting profit. If you thought they are one and the same, think again. They are ...
- Analyze Financial results for Economic Profit
Economic profit is a residual income measurement which subtracts the cost of capital from net operating profits after tax generated in the business. Strategic ...
- Economic profit - AmosWEB
The difference between the total opportunity cost of production and the total revenue received by a firm. Economic profit is what remains after ALL opportunity ...