Suppose your donut shop earns $24,000 in total revenues per month with explicit costs of $12,000 and opportunity costs of $8,000. Your economic profit is

Question

Quizplus · Accepted Answer

The economic profit can be calculated as follows:
Total Revenues - Explicit Costs - Opportunity Costs = Economic Profit
$24,000 - $12,000 - $8,000 = $4,000
Therefore, the best choice is C, which is the economic profit of $4,000.

Suppose Your Donut Shop Earns $24,000 in Total Revenues Per