Economic profit is measured by
A) MR = MC
B) TR - explicit costs - implicit costs
C) TR - explicit costs
D) TR - implicit costs
E) P - MC

Question

Quizplus · Accepted Answer

Economic profit is calculated by subtracting both explicit and implicit costs from total revenue (TR), which is represented by option B. Explicit costs are direct, out-of-pocket payments, while implicit costs represent the opportunity costs of using resources that could have been employed elsewhere.

Economic Profit Is Measured by