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Economics glossary · Firms and competition

Economic profit

What economic profit means in economics, as one of the costs and profits an economist counts, with an example and a question to test yourself.

Definition
Economic profit
Economic profit is total revenue minus total cost, including both explicit and implicit costs.
Example

Can you think of an example of economic profit?

Test yourself

Can you name the two kinds of cost and the two kinds of profit an economist counts?

Learn it properly: the module

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