What is economic profit? Economic profit is equal to total revenue minus the opportunity cost of...

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Answer 1

Answer #1

Economic profit in simple terms is the difference between total revenue and the the all the cost of production that are implicit or explicit.

implicit cost is a type of cost which already occured but do not shown in the separate expense like training of employees .

Explicit cost is a recorded cost .

For example wages rl,rent paid etc.

Implicit cost is also called opportunity cost.

In option B and D there is no no discussion of total revenue so they will not answer in option.

In option A, total revenue subtracts only opportunity cost but explicit cost is not mentioned .

so it is also not the answer.

the only true answer is option C

Answer 2

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