The costs used to calculate economic profit are:
A)accounting costs.
B)strictly dollar costs, not opportunity costs.
C)only implicit opportunity costs.
D)accounting costs and implicit opportunity costs.

Question

Quizplus · Accepted Answer

Economic profit includes the accounting costs and implicit opportunity costs. Accounting costs are the actual expenses incurred in producing a good or service, while implicit costs are the opportunity costs of using resources for a particular purpose instead of the best alternative use. Therefore, economic profit includes both explicit and implicit costs.

The Costs Used to Calculate Economic Profit Are