Refer to the above data. The firm's: A. economic profit is $12. B. economic profit is $16. C. loss is $14. D. economic profit is
1 answer:
Based on the financial data (information) provided in the table (see attachment) and assuming a total fixed cost (TFC) of $5, the business firm's: B. economic profit is equal to $16, .
<h3>What is an economic profit?</h3>An economic profit can be defined as a measure of the difference between the total revenue that a business firm (economic entity) has received from the sales of its products (outputs) and the opportunity costs of its inputs.
This ultimately implies that, an economic profit is equal to the total revenue minus total cost. Thus, it typically involves subtracting the total cost of a product from the total revenue that a business firm (economic entity) receives through it sales.
Based on the financial data (information) provided in the table (see attachment), we can infer and logically deduce that business firm's economic profit is equal to $16, assuming a total fixed cost (TFC) of $5.
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