Economic Profit (or Loss): Definition, Formula, and Example

What Is Economic Profit?

An economic profit is the difference between the revenue received from sales and the explicit costs of producing its goods and services, as well as any opportunity costs. 

Opportunity costs are a type of implicit cost determined by management and will vary based on different scenarios and perspectives.

Key Takeaways

  • Economic profit is the financial amount that remains after subtracting both explicit costs and opportunity costs from revenue.
  • Opportunity costs are the profits that a business misses out on when choosing to pursue one business venture over another.
  • Economic profit is used for internal analysis and is not required for transparent disclosure.
  • Accounting profit is straightforward and precise: revenue minus explicit costs.
  • While theoretical, economic profit computations can help a company size up and choose between potential business ventures.

Investopedia / Mira Norian

Understanding Economic Profit

Economic profit is often analyzed in conjunction with accounting profit. Accounting profit is the profit that a company shows on its income statement. It is also known as “net income.”

Accounting profit measures actual money inflows versus money outflows and is part of the required financial reporting and transparency of a company.

Economic profit, on the other hand, is not

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Neural Network Application Sector Purposes, Technologies, Types, Latest Developments, Upcoming Growth Assessment and Forecasts 2030

Neural network software plays a pivotal purpose in enabling automation across many domains, together with producing, logistics, and customer support

The Neural Community Software package Industry is expected to create at a CAGR of 32.1% from 2023 to 2030, from a price of USD 29.5 billion in 2022 to USD 273.5 billion in 2030.

The neural community software market is encountering a transformative surge, pushed by advancements in synthetic intelligence and deep studying systems. Organizations across several sectors, from health care to finance, are leveraging neural community program to unlock unprecedented insights from broad datasets.

This software permits them to practice complex neural networks, empowering machines to realize designs, make predictions, and even learn autonomously. As desire for AI-driven methods intensifies, the neural network software program industry is poised for exponential development, with forecasts predicting a constant rise in adoption and expenditure..

Also, the neural community software package sector is witnessing a democratization of AI abilities, with ever more person-pleasant equipment creating it accessible to non-experts. By intuitive interfaces, drag-and-fall functionalities, and pre-built types, individuals and companies with no extensive technical know-how can now harness the power of neural networks to address elaborate issues and push innovation.

This democratization not

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Eight suggestions for ladies who want to study STEM at college

Whilst ladies even now keep on being underrepresented in lots of STEM topics, there are quite a few explanations why women should decide on to pursue STEM-relevant degrees and profession paths. 

Based on my experience of studying STEM, listed here are some factors I’ve learnt about pursuing a STEM degree as a female. 

1. Explore interdisciplinary paths

Consider combining STEM studies with social sciences, arts or humanities for a broader perspective and a holistic technique to resolving complicated concerns. 

Interdisciplinary scholarship is not about 1 area serving as a handmaiden to yet another nor is it about operating via various disciplines. What interdisciplinary instruction features are broader avenues making it possible for students to concern strategies, understand theories and principles, and have an overview of a array of difficulties. 

2. Challenge gender gaps

Numerous younger gals who are large achievers in maths and sciences choose for biology or chemistry majors relatively than physics and maths. This could, at minimum in component, make clear why ladies are no longer a minority in fields like medication and environmental science while remaining underrepresented in fields such as engineering.

If you are far more interested in pursuing a field that is additional male-dominated, do

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16 Greatest Discovering Apps to Aid You Find out Faster and Superior

Do you want to study a new skill or make a shift in your job? Discovering applications can be a fantastic solution.

Lifelong learning is not a trend. With the emergence of look for engines additional than a ten years ago, facts has never been easier to accumulate.

Mastering apps have speedily grow to be a go-to method of enhancing or accruing skills for college students and gurus alike. Although university degrees are nevertheless seen as substantial-priority achievements in the workplace right now, people are becoming increasingly warm to the concept of developing capabilities on the facet as an appropriate replacement for a diploma.

With so a lot of credible assets obtainable to jumpstart a new element of your job, what are you waiting around for?

If you’re wanting to achieve a new skill or make improvements to upon just one in which you are previously invested, this special record of the pretty greatest understanding applications can assist you master additional properly and get to new heights in your profession, no make any difference your discovering design and style.

1. LinkedIn Finding out

This skilled network has created a significant force towards educating its devoted end users. LinkedIn Studying is

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