Cryptocurrency Q&A
How to find economic profit?
How to find economic profit?
CryptoTitanGuard
Sat Jan 18 2025
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5 answers
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I'm trying to figure out how to calculate economic profit. I understand it's different from accounting profit, but I'm not sure exactly how to determine it. Can someone explain the process or formula to find economic profit?
5 answers
Alessandro
Mon Jan 20 2025
The second part is total explicit costs, which are the direct costs associated with production, such as wages, rent, and materials.
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Enrico
Mon Jan 20 2025
The calculation of economic profit involves several components.
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Maria
Mon Jan 20 2025
The first part is total revenue, which represents the total amount of money earned by a business from its sales.
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noah_doe_writer
Sun Jan 19 2025
The third part is total implicit costs, which are the indirect costs that are not easily quantifiable, such as the opportunity cost of using resources for a particular purpose.
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CryptoVanguard
Sun Jan 19 2025
When these three components are combined, the formula for economic profit is derived: Economic Profit = Total Revenue - Total Explicit Costs - Total Implicit Costs.
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