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 margin

Profit margin

Indicator of profitability. The ratio of earnings available to stockholders to net sales. Determined by dividing net income by revenue for the same 12-month period. Result is shown as a percentage. Also known as net profit margin.


Operating profit margin

Operating profit margin

The ratio of operating profit to net sales.


Realized profit (or loss)

Realized profit (or loss)

A capital gain or loss on securities held in a portfolio that has become actual by the sale or other type of surrender of one or many securities.


Profit sharing plan

Profit sharing plan

An incentive system providing that employees share in company profits through a cash fund or a deferred plan used to buy stock or bonds.


Profit maximizing

Profit maximizing

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


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