Q237
A firm earns economic profit when total profit exceeds
A.
Normal profit
AnswerB.
Implicit costs
C.
Explicit costs
D.
Variable costs
Answer: Option A
Solution
Answer: Option A
Solution:
A firm earns economic profit when total profit exceeds Normal profit. Economic profit is the profitability measurement that calculates the amount that revenues received from selling a product exceeds opportunity costs incurred from using resources to make and sell these products.