If total revenue is €100, explicit costs are €50, and implicit costs are €30, then accounting profit equals €50.

Name: If total revenue is €100, explicit costs are €50, and implicit costs are €30, then accounting profit equals €50.
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Question

Quizplus · Accepted Answer

Accounting profit is calculated by subtracting explicit costs from total revenue. 
Accounting profit = total revenue - explicit costs 
= €100 - €50 
= €50 
Implicit costs are not considered in the calculation of accounting profit.

If Total Revenue Is €100, Explicit Costs Are €50, and Implicit