Suppose your coffee shop earns $25,000 in total revenues per month with explicit costs of $15,000 and opportunity costs of $10,000. Your economic profit is

Question

Quizplus · Accepted Answer

Economic profit is calculated as total revenue minus explicit costs minus opportunity costs. In this case, the calculation would be:

$25,000 (total revenue) - $15,000 (explicit costs) - $10,000 (opportunity costs) = $0

Therefore, the economic profit is zero. The best choice is D.

Suppose Your Coffee Shop Earns $25,000 in Total Revenues Per