economic profit


The amount remaining after subtracting from the total income of a company the total monetary cost of all business activities, as well as the opportunity cost of profits that could have been made by investing resources in alternative business activities. The economic profit measures both the financial status of the firm, and the effectiveness of the firm's decision-making strategies.

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I didn't know if we would get any kind of economic profit from what we were doing, but it was worth a shot.

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The economic profit of the company for this past year was positive despite missing out on a highly lucrative opportunity.

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While their profit margins were strong, once they looked at their economic profit they realized they had left a large amount on the table by passing on a partnering offer.

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