Abstract
The economist considers costs from the point of view of opportunity cost– the best alternative forgone. This bears on: (a) his concept of ‘profits’; (b) production in the short period. Supernormal profit is the total revenue less explict costs less implicit costs (e.g. own labour and capital) less normal profit (the minimum return necessary to retain a firm in the particular industry).
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© 1994 Jack Harvey
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Harvey, J. (1994). Deciding on the Most Profitable Output. In: Economics Revision Guide. Palgrave, London. https://doi.org/10.1007/978-1-349-13313-0_11
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DOI: https://doi.org/10.1007/978-1-349-13313-0_11
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-60195-2
Online ISBN: 978-1-349-13313-0
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