Economic profit and opportunity costs
The major difference is that economic profit factors in implicit costs (sometimes called opportunity costs). Just what do we mean by opportunity costs anyway?
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A monopolist produces a single homogeneous good, which she sells in two distinct markets between which price discrimination is possible. Her total cost function is:
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How does that associate to relationship of net income and working operations etc. Just that they have less cash now as the cost of generating new business?
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