Principles of Microeconomics / Unit 17 MIC 1616 short lesson, about 20 seconds
Profit, Three Ways
Captions available
The idea
Accounting profit is revenue minus explicit costs; economic profit subtracts implicit costs too, the owner's forgone wage and the capital's forgone return. Zero economic profit is a normal profit: the resources earn what they would elsewhere.
In practice
A positive accounting profit can be an economic loss.
Where people slip
Every profit from unit six on is economic profit; entry and exit respond to it.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
- Nothing yet depends on this.
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