Economic profit is equal to total revenue minus:

Question

Quizplus · Accepted Answer

Economic profit takes into account both explicit costs (e.g. wages, rent, materials) and implicit costs (e.g. opportunity costs, foregone profits from other potential uses of resources). Therefore, economic profit is equal to total revenue minus both implicit and explicit costs. Marginal costs, on the other hand, refer to the additional cost of producing one additional unit of output and are not directly related to economic profit.

Economic Profit Is Equal to Total Revenue Minus