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A company is migrating a legacy application to the cloud. Two C-level executives are currently engaged in the initial stages of the migration, and they are planning a rip-and-replace approach. Before initiating the project, the FIRST step should be to identify:
Economic Profit
The difference between a firm's total revenues and its opportunity costs, representing the additional gain over what could have been earned in the next best alternative.
Normal Profit
The minimum level of earnings needed for a company to remain in business, often considered as the company's opportunity cost.
Break Even
The juncture where the aggregate of all costs matches the total income, leading to neither a profit nor a loss.
Short Run
A period of time during which at least one of a firm's inputs is fixed.
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