Economic profit is most closely associated with

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Economic profit is the total revenue of a firm minus all its opportunity costs (explicit and implicit costs). This type of profit is primarily associated with activities such as innovation, achieving a monopoly in a market, and taking on uninsurable risks. These activities allow a firm to earn higher revenues than its competitors and thus earn economic profits. Economic profit is not associated with simply saving and investing, long-run competitive equilibrium, or a static economy.

Economic Profit Is Most Closely Associated with