Economic profit is defined as _____
A)total fixed cost plus total variable cost.
B)total revenue minus marginal costs.
C)average revenue minus average variable cost.
D)total revenue minus total costs.
E)marginal revenue minus opportunity costs.

Question

Quizplus · Accepted Answer

Economic profit is the difference between total revenue and total costs, including both explicit costs (such as rent and wages) and implicit costs (such as opportunity costs). The formula is Economic Profit = Total Revenue - Total Costs. Therefore, the correct answer is D, total revenue minus total costs.

Economic Profit Is Defined as _____