If the owners of a business are receiving total revenue sufficient to cover all their explicit and implicit costs,they are
A) earning positive economic profit.
B) earning a normal profit.
C) earning economic losses.
D) doing better than their next-best alternative.
E) doing worse than their next-best alternative.

Question

Quizplus · Accepted Answer

When the owners of a business are receiving total revenue sufficient to cover all their explicit and implicit costs, it means that they are earning a normal profit. This implies that they are receiving a return on investment that is just enough to cover their opportunity cost and keep them in the industry, but not earning any additional profits.

If the Owners of a Business Are Receiving Total Revenue