[amp_mcq option1=”Part of total cost” option2=”Total revenue minus total cost” option3=”Total revenue minus explicit cost” option4=”Total variable cost minus total fixed cost” correct=”option2″]<\/p>\n
The correct answer is: B. Total revenue minus total cost<\/strong><\/p>\n 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n Here is a brief explanation of each option:<\/p>\n [amp_mcq option1=”Part of total cost” option2=”Total revenue minus total cost” option3=”Total revenue minus explicit cost” option4=”Total variable cost minus total fixed cost” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-55361","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n\n