The difference between a firm's revenues and its total costs,including forgoing the next best alternative,is called

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The difference between a firm's revenues and its total costs, including the opportunity cost, is called economic profits. Economic profits take into account the forgone alternative uses of resources, while accounting profits only consider explicit costs. Normal profits refer to the minimum level of profit needed to keep a firm in the market, and economic rent refers to the surplus profit earned above and beyond what is necessary to keep the firm in the market.

The Difference Between a Firm's Revenues and Its Total Costs,including