Suppose a firm has total revenue of $200 million, explicit costs of $190 million, and implicit costs of $20 million. This firm's accounting profit is:

Name: Suppose a firm has total revenue of $200 million, explicit costs of $190 million, and implicit costs of $20 million. This firm's accounting profit is:
Brand: Quizplus
Rating: 4.8 (49 reviews)

Question

Quizplus · Accepted Answer

Accounting profit is calculated as total revenue minus explicit costs. Therefore, the accounting profit is $200 million - $190 million = $10 million.

Suppose a Firm Has Total Revenue of $200 Million, Explicit