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by ETH_start
1086 days ago
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That's only for economic profit. Normal profit remains even when economic profit is driven to zero: https://www.investopedia.com/terms/n/normal_profit.asp "Economic profit is the profit an entity achieves after accounting for both explicit and implicit costs. Economic Profit = Revenues - Explicit costs – Implicit costs Normal profit occurs when economic profit is zero or alternatively when revenues equal explicit and implicit costs. Total Revenue - Explicit Cost - Implicit Cost = 0 or Total Revenue = Explicit + Implicit Costs" |
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