Total profit = Total revenue - Total cost (including opportunity cost). Total profit defined in this way is called

Question

Quizplus · Accepted Answer

This formula includes not only explicit costs, but also opportunity costs, which are the costs associated with forgoing the next best alternative. Therefore, it represents economic profit rather than just accounting profit. Absolute profit and relative profit are not commonly used terms in economics.

Total Profit = Total Revenue - Total Cost (Including Opportunity