Economic profit is:

Name: Economic profit is:
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Question

Economic profit is:

Quizplus · Accepted Answer

Economic profit is defined as the difference between total revenue and all costs (both explicit costs, such as wages and rent, and implicit costs, such as opportunity costs). Therefore, option D, which subtracts both explicit and implicit costs from total revenue, is the correct choice. Options A, B, and C do not account for implicit costs and therefore do not provide a complete measure of economic profit.

Economic Profit Is