INTERMEDIATE

Profit

There are two types of profit: accounting profit and economic profit.

Accounting profit is a firm’s total revenues minus its total costs. It reflects gains made from producing or trading goods and services. A firms profit tends not to exceed the market rate of interest in the long run. 

Economic profit is sometimes referred to as excess profit, economic profit is the gains received when revenue exceeds the opportunity cost of inputs, all monetary costs are covered, and the capital is being employed in the most effective way. Any profit in excess of the market rate of interest is called economic profit.

 

 

Frederic Sautet - The Role of Profit

Paul Cwik - Problems and Prices

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Around the world, people are struggling to throw off authoritarianism, with deeply mixed results. From Egypt to Venezuela, determined people build networks to overthrow their regimes, but as yet we have not learned to live without Leviathan. In this issue, Michael Malice and Gary Dudney discuss their glimpses inside totalitarian regimes, while Sarah Skwire and Michael Nolan look at how totalitarian regimes grind down the individual--and how individuals fight back. Plus, Jeffrey Tucker identifies a strain in libertarianism that, left unchecked, could reduce even our vibrant movement to something that is analogous to the grim aesthetic of architectural brutalism. The struggle for our lives and freedom is a struggle for beauty; it begins inside each of us.
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