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| normal profit definitions | |||
|---|---|---|---|
| # | Definition | Sets | |
| 1 | the minimum acceptable profit for owners of the business | 3 sets | |
| 2 | the opportunity cost of the resources supplied by the firm's owners; normal profit= accounting profit - economic profit | 3 sets | |
| 3 | the minimum acceptable profit for keeping the firm in business | 2 sets | |
| 4 | the accounting profit that corresponds to a zero economic profit | 2 sets | |
| 5 | the opportunity cost of the resources supplied by the firm's owners | 2 sets | |
| 6 | where total economic costs equal total revenue, also break even point | 2 sets | |
| 7 | the cost of doing business | 1 set | |
| 8 | the return to entrepreneurship normal profit is a part of the firms opportunity cost because it is not the cost of not running another firm | 1 set | |
| 9 | the amount the owners of business would have received in the next-best alternative | 1 set | |
| 10 | the payment made by a firm to obtain and retain entrepreneurial ability; minimum income entrepreneurial ability must recieve to induce it to perform functions for a firm. | 1 set | |
| 11 | opportunity cost of owners' entrepreneuship expertise. it represents what owners could have earned if they used their organizational decision-making and other entrepreeurial skills is another activity such as running another business. | 1 set | |
| 12 | profit necessary to recover implicit costs and keep a business in operation considered to be an economic costs of production | 1 set | |
| 13 | the payment made by a firm to maintain business. portion of accounting profit that covers implicit costs. | 1 set | |
| 14 | the payment made by a firm to obtain and retain entrepreneurial ability; the minimum income entrepreneurial ability must receive to induce it to perform entrepreneurial functions for the firm. | 1 set | |
| 15 | cost of entrepreneur contributions | 1 set | |
| 16 | payment made by a firm to obtain and retain entrepreneurial ability; meets the implicit and explicit costs of the firm | 1 set | |
| 17 | enough to keep in business | 1 set | |
| 18 | a return to entrepreneurs which is just sufficient to keep them in their present activity. all costs including opportunity cost of resources used are covered. ar = ac | 1 set | |
| 19 | rate of earnings on invested capital | 1 set | |
| 20 | the amount the owners of businesses would have received in the next best alternative | 1 set | |
| 21 | revenue covers implicit and explicit costs | 1 set | |
| 22 | occurs when ar is equal ac so owners receiving just enough to keep them in this industry as they can earn no more in the activity that is the next best use of their resources | 1 set | |
| 23 | opportunity cost of the resources supplied by the firm's owners; normal profit=accounting profit-economic profit. | 1 set | |
| 24 | the minimum accounting profit necessary to keep the firm operating in it current undertaking (is an implicit cost and is included as a cost when calculating profit) | 1 set | |
| 25 | the level of profit that business owners could get in their next best alternative investment | 1 set | |
| 26 | cost of doing business, the opportunity cost of the resources supplied by the firm's owners; normal profit= accounting profit - economic profit | 1 set | |
| 27 | the amount necessary for the firm to be willing to keep the resources deployed in the firm, it is also where the firm's economic profit equals zero | 1 set | |
| 28 | minimum acceptable profit for owners | 1 set | |
| 29 | accounting profit - economic profit | 1 set | |
| 30 | enough profit to keep the business going (not too much or too little) | 1 set | |
| 31 | entrepreneurial ability | 1 set | |
| 32 | opportunity cost of resources supplied by owners of the firm--includes the opportunity cost of their time | 1 set | |
| 33 | the payment made by a firm to obtain and retain entrepreneurial ability; the minimum income entrepreneurial ability must receive to induce it to perform entrepreneurial functions for a firm | 1 set | |
| 34 | payment for (cost of) entrepreneurs contributions | 1 set | |
| 35 | profit that the firm could make by using its resources in their next best use (opportunity cost) | 1 set | |
| 36 | the opportunity cost of the resources supplied by the firm's owners; accountin profit-economic profit | 1 set | |
| 37 | the accounting profit earned when all resources earn their opportunity cost | 1 set | |
| 38 | the cost of entrepreneurial talent; must make this much in economic profit to stay in the business; the cost of doing business | 1 set | |
| 39 | opportunity cost of labour and capital | 1 set | |
| 40 | p = lrmc | 1 set | |