You developed a new technology for weather stripping windows. Your monopoly in this market turns out to be lucrative. Your total revenue was $75,000 and your total cost-explicit and implicit costs combined-was $25,000. The $50,000 difference representsyour
A) accounting revenue
B) accounting profit
C) economic profit
D) economic revenue
E) normal profit

Question

Quizplus · Accepted Answer

Economic profit includes both explicit and implicit costs. The $50,000 difference between total revenue and the combined explicit and implicit costs represents economic profit.

You Developed a New Technology for Weather Stripping Windows