Economic profit is the difference between
A)Accounting profits and external costs.
B)Total costs and total economic costs.
C)Accounting profit and explicit costs.
D)Total revenues and total economic costs.

Question

Quizplus · Accepted Answer

Economic profit takes into account both explicit costs (accounting costs) and implicit costs (opportunity costs), which are included in total economic costs. Therefore, economic profit is calculated as total revenues minus total economic costs, making choice D the correct answer.

Economic Profit Is the Difference Between