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Economic Profit

Author: Kate Eskra
Video Transcript
Terms to Know
Economic Profit

Total revenue minus total cost, where total cost includes implicit (opportunity) costs.

Formulas to Know
Economic Profit

P r o f i t equals T R minus T C
w h e r e colon
T R equals p r i c e cross times q u a n t i t y space s o l d
T C equals left parenthesis cos t space p e r space u n i t cross times q u a n t i t y space p r o d u c e d right parenthesis plus o p p o r t u n i t y space cos t