Home > Terms > Serbian (SR) > добит
добит
The main reason firms exist. In economic theory, profit is the reward for risk taken by enterprise, the fourth of the factors of production – what is left after all other costs, including rent, wages and interest. Put simply, profit is a firm’s total revenue minus total cost. Economists distinguish between normal profit and excess profit. Normal profit is the opportunity cost of the entrepreneur, the amount of profit just sufficient to keep the firm in business. If profit is any lower than that, then enterprise would be better off engaged in some alternative economic activity. Excess profit, also known as super-normal profit, is profit above normal profit and is usually evidence that the firm enjoys some market power that allows it to be more profitable than it would be in a market with perfect competition.
- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
- Product:
- Acronym-Abbreviation:
Other Languages:
Member comments
Terms in the News
Featured Terms
ригатони
A large ribbed (grooved), tubular pasta that is cut into segments approximately 2 to 3 inches in length.
Contributor
Featured blossaries
Carissa
0
Terms
6
Blossaries
1
Followers
Rhetoric of the American Revolution
stanley soerianto
0
Terms
107
Blossaries
6
Followers
2014 FIFA World Cup Venues
Browers Terms By Category
- Biochemistry(4818)
- Genetic engineering(2618)
- Biomedical(4)
- Green biotechnology(4)
- Blue biotechnology(1)
Biotechnology(7445) Terms
- Yachting(31)
- Ship parts(4)
- Boat rentals(2)
- General sailing(1)
Sailing(38) Terms
- Cooking(3691)
- Fish, poultry, & meat(288)
- Spices(36)
Culinary arts(4015) Terms
- Body language(129)
- Corporate communications(66)
- Oral communication(29)
- Technical writing(13)
- Postal communication(8)
- Written communication(6)
Communication(251) Terms
- General packaging(1147)
- Bag in box(76)