Pure, or economic, profit is the return required to retain entrepreneurial talent in that line of business. any amount remaining above normal profits. the amount remaining when implicit costs are removed from total revenue. determined by subtracting explicit costs from total revenue.
Pure, or economic, profit is the return required to retain entrepreneurial talent in that line of business. any amount remaining above normal profits. the amount remaining when implicit costs are removed from total revenue. determined by subtracting explicit costs from total revenue.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter22: Getting Divisions To Work In The Firm’s Best Interests
Section: Chapter Questions
Problem 4MC
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Question
Pure, or economic, profit is
the return required to retain entrepreneurial talent in that line of business.
any amount remaining above normal profits.
the amount remaining when implicit costs are removed from total revenue.
determined by subtracting explicit costs from total revenue.
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