Which of the following statements about economic profits is not correct?

Question

Quizplus · Accepted Answer

Economic profits are not considered an explicit cost of production. Instead, they are the surplus remaining after all explicit and implicit costs, including opportunity costs, have been deducted from total revenues. Explicit costs are direct, out-of-pocket payments for wages, rent, materials, etc., while economic profits take into account both explicit and implicit costs, including the opportunity cost of capital.

Which of the Following Statements About Economic Profits Is Not