If a firm has total revenue of $300 million, explicit costs of $200 million and implicit costs of $30 million, its accounting profit is:

Question

Quizplus · Accepted Answer

Accounting profit equals total revenue minus explicit costs. Therefore, the accounting profit for this firm is $100 million ($300 million - $200 million). Implicit costs are not included in the calculation of accounting profit.

If a Firm Has Total Revenue of $300 Million, Explicit