Pure or economic profit is:

A) the amount by which accounting profits exceed normal profits.
B) determined by subtracting explicit costs from total revenue.
C) the return required to retain entrepreneurial talent in some particular line of production.
D) the return to any resource the supply of which is perfectly inelastic.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, providing a measure of performance beyond accounting profit.

Accounting Profits

The net income for a company calculated by subtracting total expenses from total revenues, according to standard accounting practices.

Explicit Costs

Direct, out-of-pocket payments for inputs or resources used in the production of goods or services.