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Also known as profitability, accounting profit, book profit, profit
concept in economics
AI overview
Economic profit is the money a business keeps after paying all its costs, including both obvious expenses like wages and materials as well as hidden costs like the opportunity to use money or resources elsewhere. It matters because it shows whether a business is truly doing better than its next-best alternative, helping explain which companies will survive and grow in a competitive market.
AI-generated from the Wikipedia summary — may contain errors.