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Explain why Economic Profits [CO C] are important for the growing online media companies

Explain why Economic Profits [CO C] are important for the growing online media companies

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The online media industry is cyclical in nature and responds quickly to the change in the business environment. It means that investments taking place in online media companies, must recover explicit costs such as cost of operations, wages and other expenses as well as the implicit costs such as the earnings made by the investments made somewhere else. Recovering these costs, are only possible when these firms earn economic profit. Earning economic profits will make online media companies to remain sustainable & competitive as well as earn revenues to make further investment for growth. So, online media companies should earn economic profits.

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