Economic profit is equal to the difference between:
A)total revenue and the full opportunity cost of all the resources used in production.
B)total revenue and implicit costs.
C)accounting profit and explicit costs.
D)implicit and explicit costs.

Question

Quizplus · Accepted Answer

Economic profit takes into account the full opportunity cost of all the resources used in production, including both implicit and explicit costs. Therefore, it is the difference between total revenue and the full opportunity cost of all resources used. Choice B only considers implicit costs, while choice C only considers explicit costs. Choice D is incorrect because economic profit is the difference between both implicit and explicit costs.

Economic Profit Is Equal to the Difference Between