The difference between a firm's total revenue and what must be paid to attract resources from their best alternative use is called
A)total revenue
B)utility
C)economic profit
D)cost
E)production efficiency

Question

Quizplus · Accepted Answer

Economic profit takes into account not only a firm's total revenue but also the opportunity cost of using resources in their next best alternative use. Therefore, it provides a more accurate measure of a firm's performance than total revenue alone. The other options (A, B, D, E) either do not take into account opportunity cost or are not directly related to the difference between total revenue and opportunity cost.

The Difference Between a Firm's Total Revenue and What Must