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Profit essentially being the excess of total revenue from production over total costs of the activities that allowed for revenue generation, has another dimension if approached from a purely economic perspective. In accounting terms this definition would be entirely acceptable; however an economic approach gives a further explanation to the notion of total cost. This is not merely the cost of economic activity but also its opportunity cost, which involves the user cost of capital and imputed costs that evaluate the use of employed investment and production factors at a better alternative, as well as sunk expenditures on factors that are not recoverable once made...
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