Zero profit

 

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Zero profit

A situation in which profit in an industry is zero, usually as a result of free entry and exit. It may, if firms are not identical, refer only to the marginal firm. And it always means zero excess profit, not that all returns to capital invested in the industry are zero.



Similar Matches

Profit maximizing

Profit maximizing

The level of a variable or behavior that maximizes the profit of a firm.


Pre tax profit

Pre tax profit

See: 'profit before tax'.


Profit margin

Profit margin

Operating profit as a percentage of sales (or turnover). To calculate profit margin, multiply operating profit by 100, and divide the result by turnover.Example: Company X made an operating profit of £500m on a turnover of £3,000m. Profit margin was therefore (500 x 100) / 3000= 16.66%Profit margin tells you about the underlying profitability of a company's trading activities, not whether it is actually making money for shareholders. Note that it is calculated before taking account of interest charges or tax.


Net profit after tax

Net profit after tax

The net profits of a company after taxation. This is the 'bottom line' that you often hear about. Dividends are paid out of net profits after tax, and the amount that isn't paid out is the retained profit.


Excess profit

Excess profit

Profit of a firm over and above what provides its owners with a normal (market equilibrium) return to capital.


Further Suggestions

Excess profits tax
profit before tax
Gross profit
gross profit
Profit Table
Risk adjusted profitability
Profit margin
Profit Range
Profit Graph
Gross profit margin
Profitability ratios
unitised with profits
Non profit endowment
profits warning
Windfall profit
Profitability index
Realized profit (or loss)
Pretax earnings or profits
Unitised with profit endowment
Directly Unproductive Profit-Seeking Activities
net profit before tax (pre tax profit)
net profit
Profit taking
paper profit
Profit shifting


 
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