Economic Profit Calculator
Parameter | Description | Example Value |
---|---|---|
Total Revenue | The total revenue generated from sales. | $500,000 |
Explicit Costs | The total explicit costs (e.g., wages, rent, materials). | $300,000 |
Implicit Costs | The total implicit costs (e.g., opportunity costs). | $50,000 |
Economic Profit | The profit calculated by subtracting both explicit and implicit costs from total revenue. Formula: Total Revenue – Explicit Costs – Implicit Costs |
$150,000 |