标题: normal profit vs. economic profit? [打印本页] 作者: brk1yn 时间: 2011-7-11 18:37 标题: normal profit vs. economic profit?
whats the difference?作者: chetan86 时间: 2011-7-11 18:37
Normal profit is what you need to earn to cover all the costs, including opportunity cost. It's the profit you get when all your resources are being used efficently and couldn't be put to better use.
Economic profit is any amount beyond normal profit. That is, normal profit => ec profit=0.作者: rgonzalez 时间: 2011-7-11 18:37
Think of economic profit as total revenue minus total cost; the 'total cost' includes opportunity cost as well (i.e. the value of some alternative forgeone). Accounting profits do NOT consider opportunity costs.
