a. the income or reward accruing to a successful entrepreneur and held to be the motivating factor of all economic activity in a capitalist economy b. (as modifier): the profit motive. 5. a gain, benefit, or advantage vb to gain or cause to gain profit [C14: from Latin prōfectus adv...
Learn what the definition of economic profit is, and understand how to calculate it using an equation. Updated: 11/21/2023 Table of Contents What is the Economic Profit Definition? Economic Profit Formula Advantages and Disadvantages of Economic Profit Lesson Summary Frequently Asked Questions Wh...
Economic profit (or loss) is the difference between the revenue received from the sale of an output and the costs of all inputs, including opportunity costs.
profit the difference that arises when a firm'sTOTAL REVENUEis greater than itsTOTAL COSTS. This definition of‘economic profit’ differs from that used conventionally by businessmen(accountingprofit)in that accounting profit takes into account only explicit costs. Economic profit can be viewed in ter...
Also Read:Accounting Profit vs Economic Profit – All You Need To Know ReadEBITfor more. Operating Profit Gross profit minus all other indirect costs, depreciation, and amortization equals operating profit. A firm incurs various additional costs in the course of its operations, like marketing, admi...
1. (Economics) of or relating to an economy, economics, or finance: economic development; economic theories. 2. (Commerce) Brit capable of being produced, operated, etc, for profit; profitable: the firm is barely economic. 3. (Economics) concerning or affecting material resources or welfare...
(MEC)isakindofdiscountrate (alsocalledinvestmentprofitmargin),thediscountrateto maketheuseofacapitalgoodspresentvalueisequaltothe sumoftheexpectedreturnsintheperiodofthesupplyof capitalgoodspricesorreplacementcost 11InvestmentMarginalEfficiency(MarginalEfficiencyof Investment):whentheinterestraterfalling,ifevery ...
While the idea of profit being part of the motivation behind all manners of economic activity is not controversial in itself, there has been more scrutiny and analysis around applying it as the only factor in decision making. Critiques of the Profit Motive ...
profit profitable profit and loss See More Nearby Entries Cite this Entry Style “Profitable.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/profitable. Accessed 1 Feb. 2025. Copy Citation Share Post the Definition of profitable to Facebook ...
“Economics is an inquiry into the nature and causes of the wealth of nations.”— Adam Smith “Economics is the study of mankind in the ordinary business of life. It examines that part of the individual and social activities that are closely related to the attainment of material resources, ...