Economic profits is the difference of total revenue and total costs including the opportunity costs of the resources used in the business.

Question

Quizplus · Accepted Answer

Economic profits take into account both explicit costs (such as rent, wages, and materials) and implicit costs (such as the opportunity cost of using resources like time and capital in a certain way). Therefore, it is the difference between total revenue and total economic costs, which includes both explicit and implicit costs.

Economic Profits Is the Difference of Total Revenue and Total