Suppose your accountant told you that the economic profit you made last year was $50,000. You would be pleased because the $50,000 represents your total revenue minus

Question

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Economic profit is calculated by subtracting both implicit (non-out-of-pocket costs, such as opportunity costs) and explicit (direct, out-of-pocket costs) costs from total revenue.

Suppose Your Accountant Told You That the Economic Profit You