Profit (economics)

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In economics, profit in the accoontin sense o the excess o revenue ower cost is the sum o twa components: normal profit an economic profit. Normal profit is the profit that is necessar tae juist kiver the opportunity costs o the awner-manager or o the firm's investors. In the absence o this mucklle profit, thir pairties wad widraw thair time an funds frae the firm an uise them tae better advantage ensewhaur. In contrast, economic profit, whilees cried excess profit, is profit in excess o whit is required tae kiver the opportunity costs.