If a firm has revenues of $100, explicit costs of $50, and implicit costs of $50, its economic profit is:
A) $0.
B) $50.
C) $100.
D) $500.

Name: If a firm has revenues of $100, explicit costs of $50, and implicit costs of $50, its economic profit is: A) $0. B) $50. C) $100. D) $500.
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Question

Quizplus · Accepted Answer

Economic profit is calculated by subtracting both the explicit and implicit costs from total revenues. Therefore, in this case, the economic profit would be $0. ($100 - ($50 + $50) = $0)

If a Firm Has Revenues of $100, Explicit Costs of $50