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Profit

"In economics, profit in the accounting sense of the excess of revenue over cost is the sum of two components: normal profit and economic profit. Understanding profit can be broken down into three aspects: the size of profit, the portion of the total income, and the rate of profit (in comparison to the initial investment).[citation needed] Normal profit is the profit that is necessary to just cover the opportunity costs of an owner-manager or of a firmĀ“s investors. In the absence of this profit, these parties would withdraw their time and funds from the firm and use them to better advantage elsewhere. In contrast, economic profit, sometimes called excess profit, is profit in excess of what is required to cover the opportunity costs." - (en.wikipedia.org 30.09.2020)

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