The costs economists use in the concept of economic profit are:

Question

Quizplus · Accepted Answer

Economists use both accounting costs and implicit costs, which includes the value of the best opportunity forgone, to calculate economic profit. This provides a more comprehensive understanding of the true cost of producing a good or service. B is incorrect because economists do consider opportunity costs, not just strictly dollar costs. C is incorrect because economists consider both implicit and explicit costs.

The Costs Economists Use in the Concept of Economic Profit