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
иза сцене
Задњи део сцене који обично остаје ван видокруга публике. Служи као остава за сценографије које су потребне за представу која је у току или која тек ...
Contributor
Featured blossaries
mailmeddd123
0
Terms
2
Blossaries
0
Followers
Top 20 Sites in United States
Browers Terms By Category
- Human evolution(1831)
- Evolution(562)
- General archaeology(328)
- Archaeology tools(11)
- Artifacts(8)
- Dig sites(4)
Archaeology(2749) Terms
- General boating(783)
- Sailboat(137)
- Yacht(26)
Boat(946) Terms
- Meteorology(9063)
- General weather(899)
- Atmospheric chemistry(558)
- Wind(46)
- Clouds(40)
- Storms(37)
Weather(10671) Terms
- Inorganic pigments(45)
- Inorganic salts(2)
- Phosphates(1)
- Oxides(1)
- Inorganic acids(1)
Inorganic chemicals(50) Terms
- General packaging(1147)
- Bag in box(76)