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.

Use economic profit in a sentence

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
economic policy economic recovery