Economic profit is
A) (P‐ATC)q.
B) (P+ATC)q.
C) P(q-ATC).
D) Pq/ATC.

Name: Economic profit is A) (P‐ATC)q. B) (P+ATC)q. C) P(q-ATC). D) Pq/ATC.
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Question

Quizplus · Accepted Answer

Economic profit is calculated as (P-ATC)q, where P is the price per unit, ATC is the average total cost per unit, and q is the quantity of units sold. This formula represents the difference between the total revenue (Pq) and the total cost (ATCq), which is the definition of economic profit.

Economic Profit Is