Profit
What Profit means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Profit
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Reference: Pearson Edexcel
The surplus remaining after total costs are deducted from total revenue over a given period, recorded when a sale is made regardless of whether money has been received.
The difference between total revenue and total cost, found by subtracting total cost from total revenue.
The reward for enterprise, which compensates for the risk of failure.
A long-term measure of success, calculated as revenue minus costs.
Topics that use Profit
- Business objectives and pricing decisions (Pearson Edexcel A-Level)
- Business survival and cash flow (Pearson Edexcel A-Level)
- Factors of production (Pearson Edexcel A-Level)
Related terms
- Average cost
- Business survival
- Capital
- Cash flow
- Cash-flow forecast
- Contribution per unit
- Credit requirements
- Entrepreneurship
Using Profit in the exam
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