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

Quizplus · Accepted Answer

The accounting profit is calculated as total revenue minus explicit costs. 
So, Accounting profit = $100 - $50 = $50. 
Implicit costs are not included in accounting profit.

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