Q233
Economic profit is
A.
Part of total cost
B.
Total revenue minus total cost
AnswerC.
Total revenue minus explicit cost
D.
Total variable cost minus total fixed cost
Answer: Option B
Solution
Answer: Option B
Solution:
Economic profit is Total revenue minus total cost. Economic profit is the monetary costs and opportunity costs a firm pays and the revenue a firm receives. Economic profit = total revenue – (explicit costs + implicit costs).