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
stočić za kafu
Nizak, pravougaoni ili kvadratni sto, često postavljen ispred sofe kako bi se služila kafa, čaj ili kokteli.
Contributor
Featured blossaries
Marouane937
0
Terms
58
Blossaries
3
Followers
The World's Nine Most Powerful Women
Browers Terms By Category
- General art history(577)
- Visual arts(575)
- Renaissance(22)
Art history(1174) Terms
- Hats & caps(21)
- Scarves(8)
- Gloves & mittens(8)
- Hair accessories(6)
Fashion accessories(43) Terms
- Human evolution(1831)
- Evolution(562)
- General archaeology(328)
- Archaeology tools(11)
- Artifacts(8)
- Dig sites(4)
Archaeology(2749) Terms
- Rice science(2869)
- Genetic engineering(2618)
- General agriculture(2596)
- Agricultural programs & laws(1482)
- Animal feed(538)
- Dairy science(179)