Total profit = Total revenue − Total cost (including opportunity cost). Total profit defined in this way is called
A)accounting profit.
B)economic profit.
C)absolute profit.
D)relative profit.

Question

Quizplus · Accepted Answer

Total profit that includes opportunity cost is called economic profit. Accounting profit only takes into account explicit costs, while economic profit considers both explicit and implicit costs. Absolute and relative profit are not commonly used terms in economics.

Total Profit = Total Revenue − Total Cost (Including Opportunity