Respuesta :
If economic profit for a firm is negative then the firm should exit the industry in the long run.
A profit is a difference between the revenue from an economic entity's outputs and the opportunity costs of its inputs. It is the same as total revenue fewer total outlays, which entails both direct and indirect costs.
It is distinct from accounting profit in that it only refers to the costs that are explicitly stated on a company's financial statements. Accounting profit is calculated by subtracting the company's entire revenue from its explicit costs.
When examining a corporation, an economist considers all opportunity costs, both explicit and implicit. Economic profit is therefore less than accounting profit. According to economic theory, a company's total revenue must exceed its opportunity cost to be profitable.
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