A local business earned total revenue of $100,000 against economic costs of $85,000 this year. This firm's accounting profit

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Quizplus · Accepted Answer

Accounting profit is calculated as total revenue minus explicit costs. Given the total revenue is $100,000 and the economic costs (which include both explicit and implicit costs) are $85,000, the explicit costs would be part of the $85,000. Therefore, the accounting profit is the difference between the total revenue and the explicit costs, which is positive in this scenario.

A Local Business Earned Total Revenue of $100,000 Against Economic