Profit (Economics)
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In economics, the term profit has two related but distinct meanings. Normal profit represents the total opportunity costs (both explicit and implicit) of a venture to an investor or entrepreneur, whilst economic profit (also abnormal, pure, supernormal or excess profit, as the case may be monopoly or oligopoly profit, or simply profit) is, at least in the neoclassical microeconomic theory which dominates modern economics, the difference between a firm's total revenue and all costs, including normal profit. Economic profit is thus contrasted with economic interest which is the return to an owner of capital stock or money or bonds. Economic profit in contemporary neoclassical economics should be differentiated from that of the previously dominant school of classical economics and Marxian economics, which defined profit as the return to the employer of capital stock (such as machinery, factories, and ploughs) in any productive pursuit involving labor. Other types of profit have been referenced, including social profit (related to externalities). It is not to be confused with profit in finance and accounting, which is equal to revenue minus only explicit costs, and superprofit, a concept in Marxian economic theory. From Wikipedia under the
GNU Free Documentation License Matching Results for Profit (Economics):Pareto efficient(game theory, economics) Describing a situation in which the profit of one party cannot be increased without reducing the profit of another. Aedit A Usage notes ... Pareto optimal (game theory, economics) Describing a situation in which the profit of one party cannot be increased without reducing the profit of another. ... rent seeking (economics) The attempt to profit by manipulating the economic or political ... Legislation can result in rents (and profits) to special-interes t groups. ... From Wiktionary under the
GNU Free Documentation License Matching Results for Profit (Economics):ProfitProfit generally is the making of gain in business activity for the benefit of the owners of the business. ... in two different ways, one for economics and one for accounting. ... Economics Economics is the social science that studies the production, ... subsidized capitalism from which they extract profit and upon which their power is based. ... Joan Robinson Chapter V, The Falling Rate Of Profit, p. 38. Modern technique, as Marx pointed out, ... Cambridge (in October 1921) to read economics, I did not have much ... From Wikiquote under the
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