Suppose a firm has total revenue of $500 million, explicit costs of $200 million and implicit costs of $100 million. This firm's economic profit is:

Name: Suppose a firm has total revenue of $500 million, explicit costs of $200 million and implicit costs of $100 million. This firm's economic profit is:
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Question

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Economic profit is calculated by subtracting both explicit and implicit costs from total revenue. Here, it's $500 million - $200 million - $100 million = $200 million.

Suppose a Firm Has Total Revenue of $500 Million, Explicit