Your cart is currently empty!
Day: February 16, 2021
Accounting Profit vs. Economic Profit
This will be a short article, mercifully. Accounting profit is the difference between accounting revenue and accounting cost, while economic profit is the difference between economic revenue and economic cost. (I know: not very exciting. Hang in there; it gets better.) Accounting revenue and economic revenue are the same: total revenue. The amount you receive…
Marginal Stuff: Revenue, Cost, Profit, Product, & Return
Let’s get the terminology out of the way first. “Marginal” means “for the next unit”. Thus: Marginal Revenue: The increase in revenue (sales) from producing and selling one additional unit of whatever it is you’re producing and selling Marginal Cost: The increase in cost (expenses) from producing and selling one additional unit of whatever it…