Total Economic Profit: The firm’s net profit is its total revenue (abbreviated as TR) (that is, price per unit multiplied by the net amount generated, or P X Q) subtracts its total cost (abbreviated as TC). In economics, the total costs comprise all of the firm’s opportunity costs. The gain which remains after subtracting TC from TR is the net “economic profit”. This “economic profit” is what the firm is earning over and above what it could get employing similar resources in some other manner.