Of the twenty-seven textbooks sampled, twenty-two provide numerical examples of how the entrepreneur's profit is determined, (8) and twenty define the normal rate of return as zero economic profit
. In most cases (nineteen out of twenty-seven), these examples define the normal rate of return based on the input contribution of the firm's owner.
(Editor's Note: The metric used for the analysis, economic profit
is defined as "the total profit after the cost of capital is subtracted." The insurance industry analysis using economic profit
draws on the work of some McKinsey colleagues Chris Bradley, Martin Hirt, and Sven Smit, presented in the book, "Strategy Beyond the Hockey Stick: People, Probabilities, and Big Moves to Beat the Odds."
In terms of their meaning, their two factors corresponded to "Success" and "Economic profits
" of OGAS.
From 2009-15 the club produced a cumulative economic profit
of [pounds sterling]8.93m.
If a CEO wants to perpetuate value-destroying businesses, the board should actively intercede and insist on a resolution that quickly yields positive economic profits
or else remove that business from the portfolio.
Further support for the claim against transfer pricing rules is that counter-intuitively, transfer pricing inures to the benefit of the integrated producer by inflating accounting costs and permitting the producer to hide economic profit
, thereby achieving a result undermining transfer pricing theory and regulation.
Section 2 discusses the standard incorporation of sunk costs into the total cost function and the resulting problem of measuring economic profits
. The avoidability criterion is then introduced to remedy the problem.
When the gas cost reaches 1.6 Lt/[m.sup.3], and the price of a thermo-isolation material is at 420 Lt/[m.sup.3] ([[lambda].sub.ds] = 0.034 W/(mK)), a thermo-isolation of a building wall that has a pre-reconstruction thermal resistance of [R.sub.1] = 2 would result in a largest economic profit
when the thermo-isolation material is 10 cm in thickness.
is the result of Govines dissertation for a doctoral degree in Business Administration at Beverly Hills University in 1983.
For the period between June and December 2007, Isla's monthly accounting and economic profits
were both negative, based on the calculation below:
Firms always achieve positive economic profits
through price-quality markups only if fixed capital investments are not too concave with technology choice.
In the nineteenth century, her subject, the French Atlantic Bassin d'Arcachon--a collection of beaches, a set of high dunes, a large salt water marsh surrounding agricultural land, and its associated fishing community--became the object of utopian plans, romantic idealizations, economic profits
, and government inquiries.