Suppose your accountant told you that the $50,000 you made last year was the total revenue you earned minus both explicit and implicit costs. You would be pleased because that $50,000 represents your
A) economic loss
B) economic profit
C) normal profit
D) money receipts and payments and you came out ahead by $50,000
E) accounting profit

Question

Quizplus · Accepted Answer

Economic profit includes both explicit and implicit costs. If you made $50,000 after accounting for these, it means you earned more than your opportunity costs, indicating an economic profit.

Suppose Your Accountant Told You That the $50,000 You Made