Economic profit is

Question

Economic profit is

Quizplus · Accepted Answer

Economic profit takes into account the opportunity cost of all resources used in production, including those provided by the owner. It also considers explicit costs, such as wages and rent, but subtracts them from total revenue to arrive at the economic profit. Option B only includes the implicit costs of owner-supplied resources, while Option C is incorrect because it subtracts the opportunity cost of market-supplied resources from accounting profit instead of from total revenue. Option D only considers explicit costs and does not factor in opportunity cost.

Economic Profit Is