Total economic profit is the vertical distance between P and ATC.

Name: Total economic profit is the vertical distance between P and ATC.
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Question

Quizplus · Accepted Answer

Total economic profit is calculated by subtracting total costs (including both explicit and implicit costs) from total revenue, not by the vertical distance between price (P) and average total cost (ATC). The vertical distance between P and ATC at a given quantity represents profit per unit, not total economic profit.

Total Economic Profit Is the Vertical Distance Between P and ATC