Economic profit is

The correct answer is: B. Total revenue minus total cost

Economic profit is the difference between total revenue and total cost, including both explicit and implicit costs. Explicit costs are the costs that a firm incurs in order to produce its goods or services, such as the cost of labor, materials, and equipment. Implicit costs are the costs that a firm incurs in order to use its resources, such as the opportunity cost of capital.

Total revenue is the total amount of money that a firm receives from selling its goods or services. Total cost is the total amount of money that a firm spends in order to produce its goods or services.

Economic profit is important because it measures the profitability of a firm. A firm is said to be profitable if its economic profit is positive. A firm is said to be unprofitable if its economic profit is negative.

Here is a brief explanation of each option:

• Option A: Part of total cost. This is incorrect because economic profit is not part of total cost. Economic profit is the difference between total revenue and total cost.
• Option B: Total revenue minus total cost. This is the correct answer. Economic profit is the difference between total revenue and total cost.
• Option C: Total revenue minus explicit cost. This is incorrect because economic profit includes both explicit and implicit costs.
• Option D: Total variable cost minus total fixed cost. This is incorrect because economic profit includes both variable and fixed costs.