During the synthesis stage of the cell cycle, a cell makes (replicates its own) DNA.
Economic profits equals total revenues minus the sum of explicit costs and implicit costs. Since explicit costs are already subtracted when arriving at the accounting profit, we can find economic profit by subtracting the implicit costs from the accounting profit.
Average total cost is an important concept because a firm cannot earn an economic profit selling a good unless its unit price is above average total cost. For example, if Paulineâs Pies incurs costs of $6,000 in a given month and produces 1,000 frozen pizzas that month, the firmâs average total cost is $6.If the price of a frozen pizza is above $6, the firm will earn a profit.Otherwise, it will not. firmâs âeconomic profitâ (or loss) is equal to the firmâs revenue, minus the firmâs economic costs. The concept of economic profit is crucial because firms make decisions based on economic profits rather than accounting profits. That is, firms want to maximize their economic profits rather than accounting profits.