The entrepreneur is always searching for

Question

Quizplus · Accepted Answer

The entrepreneur is always searching for economic profit which is the difference between the total revenue and total opportunity costs,e.g. implicit and explicit costs. Economic profit takes into consideration the opportunity cost of the entrepreneur's time and money invested in the business, whereas accounting profit only includes explicit costs such as wages, rent and material expenses. Positive profit refers to any profit generated regardless of the amount, while normal profit refers to the minimum profit needed to keep the business running.

The Entrepreneur Is Always Searching for