Economic profit is:

Question

Economic profit is:

Quizplus · Accepted Answer

Economic profit is calculated by subtracting all explicit and implicit costs from total revenue or accounting profit. So, it is accounting profit less implicit costs. Therefore, the correct choice is D, which is accounting profit less implicit costs. Option A is incorrect because economic profit can be positive, negative, or zero. Option B is incorrect because economic profit can be greater or less than accounting profit depending on the level of implicit costs. Option C is also incorrect because economic profit can be less than, equal to, or greater than accounting profit depending on the level of implicit costs.

Economic Profit Is