A firm's total explicit costs are $1,000. Its total implicit costs are $500, and it has a total revenue of $900. This firm receives

Name: A firm's total explicit costs are $1,000. Its total implicit costs are $500, and it has a total revenue of $900. This firm receives
Brand: Quizplus
Rating: 4.8 (54 reviews)

Question

Quizplus · Accepted Answer

The firm's total revenue of $900 is less than the sum of its explicit and implicit costs ($1,000 + $500 = $1,500). Therefore, this firm is experiencing a loss and is not receiving either an economic profit or an accounting profit.

A Firm's Total Explicit Costs Are $1,000