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Economic profit is when revenue exceeds total cost of inputs. Normal profit, on the other hand, is net profit less costs.
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How is the concept of a normal return on investment related to the distinction between business and economic profit?
Economic profit is the profit made on an investment of some sort in which inflation and other economic factors have been considered. Normal return on investment is just the net profit made in the investment (simple subtraction).
Does accounting profit or economic profit determine how entrepreneurs allocate resources between different businesses ventures?
yes
Is economic profit always less than accounting profit?
No economic profit is not always less than accounting profit; However, if accounting profit is less than economic profit the business would exit the industry.
Is economic profit a cost of production?
Economic profits are not costs of production since the entrepreneur does not require the gaining of an economic profit to keep the firm operating. In economics, costs are whatever is required to keep a firm operating.
Is economic profit equal to accounting profit?
no
What is the Difference between Normal profit and Economic Profit?
In economics, normal profit is often called the break-even point. It is the level of profit where all of the costs of your business, including the salary of the CEO, are covered. When a firm has normal profit but not economic profit, the total revenue of the firm equals the total cost of the firm. However, if a firm has economic profit, total revenue is higher than total cost.
Differentiate between value for money and profit maximization concept in corporate governance?
differentiate between value for money and profit maximization
How is the concept of a normal return on investment related to the distinction between business and economic profit?
Economic profit is the profit made on an investment of some sort in which inflation and other economic factors have been considered. Normal return on investment is just the net profit made in the investment (simple subtraction).
Differentiate between profit sharing and co-ownership schemes of incentives to labor?
Profit sharing and co ownership of labour
Distinguish between normal profit and abnormal profit?
Normal profit is the expected profit in a business. Abnormal profit comes from an unexpected source and is usually a unique instance.
Can you differentiate between profit and non-profit making business?
any business u making money more than your expenses thas is profit otherwise loss
Does accounting profit or economic profit determine how entrepreneurs allocate resources between different businesses ventures?
yes
How does accounting profit or economic profit determine how entrepreneurs allocate resources between different business ventures?
yes
What is a reasonable profit margin?
what is the difference between reasonable profits and economic profits
Is economic profit always less than accounting profit?
No economic profit is not always less than accounting profit; However, if accounting profit is less than economic profit the business would exit the industry.
Is economic profit a cost of production?
Economic profits are not costs of production since the entrepreneur does not require the gaining of an economic profit to keep the firm operating. In economics, costs are whatever is required to keep a firm operating.
What economy has economic freedom competition between businesses and decisions motivated by profit?
Market
