Economic profit for a firm is equal to revenue minus total cost, where total cost includes all opportunity costs associated with the firm's activities.

Name: Economic profit for a firm is equal to revenue minus total cost, where total cost includes all opportunity costs associated with the firm's activities.
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Question

Quizplus · Accepted Answer

This statement is true. Economic profit is calculated by subtracting all costs (including opportunity costs) from revenue.

Economic Profit for a Firm Is Equal to Revenue Minus