![Economics 101: Economic Profit](https://i0.wp.com/sterlingterrell.net/wp-content/uploads/2016/11/1-16.jpg?fit=638%2C421&ssl=1)
[This is part of the series: The Complete Guide To Economics 101.]
What is economic profit?
Economic Profit is profit that accounts for both implicit and explicit costs under total costs.
Formally, this looks like:
Profit = Total Revenue – Total Cost
Where:
Total Cost = Implicit costs + Explicit costs