If a firm has revenues of $200, explicit costs of $100, and implicit costs of $100, then its accounting profit is:
A) $0.
B) $50.
C) $100.
D) $500.

Name: If a firm has revenues of $200, explicit costs of $100, and implicit costs of $100, then its accounting profit is: A) $0. B) $50. C) $100. D) $500.
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

Accounting profit is calculated as total revenues minus explicit costs. Therefore, $200 (revenues) - $100 (explicit costs) = $100.

If a Firm Has Revenues of $200, Explicit Costs of $100