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.

Pure Profit

The excess amount remaining after all operational, fixed, and variable costs have been subtracted from total revenue.

Accounting Profits

The difference between total revenue and explicit costs of a business, as calculated for financial reporting and tax purposes.

Explicit Costs

Direct, out-of-pocket payments for wages, materials, rent, and other expenditures incurred in the conduct of a business.