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ACCOUNTING PROFIT: The difference between a business's revenue and it's accounting expenses. This is the profit that's listed on a company's balance sheet, appears periodically in the financial sector of the newspaper, and is reported to the Internal Revenue Service for tax purposes. It frequently has little relationship to a company's economic profit because of the difference between accounting expense and the opportunity cost of production. Some accounting expense is not an opportunity cost and some opportunity cost is does not show up as an accounting expenses.
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PRODUCTION COST: The opportunity cost of using labor, capital, land, and entrepreneurship in the production of goods and services. Production cost is important to supply. The price received by a seller must be great enough to cover production cost. Note that production cost includes what you probably think of as the traditional "cost of doing business," but it includes other less obvious costs, as well. While labor, capital, and land typically involve an explicit cost--an actual money payment--the cost of entrepreneurship is often an implicit cost. In particular, the cost of entrepreneurship is termed normal profit. See also | opportunity cost | labor | capital | land | entrepreneurship | production | good | service | supply | resource prices | wage | interest | rent | profit | aggregate supply | short-run aggregate supply |
Recommended Citation:PRODUCTION COST, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2026. [Accessed: March 8, 2026].
AmosWEB Encyclonomic WEB*pedia:Additional information on this term can be found at: WEB*pedia: production cost
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PERFECTLY ELASTIC An elasticity alternative in which infinitesimally small changes in one variable (usually price) cause infinitely large changes in another variable (usually quantity). Quantity is infinitely responsive to price. Any change in price, no matter how small, triggers an infinite change in quantity. This characterization of elasticity is most important for the price elasticity of demand and the price elasticity of supply. Perfectly elastic is one of five elasticity alternatives. The other four are perfectly inelastic, relatively elastic, relatively inelastic, and unit elastic.
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BLACK DISMALAPOD
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Today, you are likely to spend a great deal of time visiting every yard sale in a 30-mile radius seeking to buy either clothing for your kitty cats or a set of luggage without wheels. Be on the lookout for infected paper cuts.
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The earliest known use of paper currency was about 1270 in China during the rule of Kubla Khan.
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"If you don't have time to do it right, when will you have time to do it over?" -- John Wooden, Basketball coach
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CAPM
Capital Asset Pricing Model
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