Answer:
A. total costs = implicit costs + explicit costs
C. profit = total revenue – total costs
E. economic profit = accounting profit – implicit costs
F. revenue = price x quantity
G.economic profit = revenue – implicit costs
Explanation:
Implicit costs are opportunity cost.
Explicit cost are the actual cost incured in carrying out an activity.
For example, if I decide to start up a delivery business, I would be leaving a job that pays $500. The cost to buy bicycles are $300. I make 10 deliveries and earn $1000.
My implicit cost is $500. It is what I would have been earning if I didn't start my business.
My explicit Cost is $300 which is the cost of acquiring bicycles.
Revenue = price of a good × quantity sold
Accounting profit = Revenue - Explicit cost. In the above example, my accounting profit is $1000 - $300 = $700
Economic profit = Accounting profit - implicit cost
In the above example, my economic profit is $700 - $500 = $200
I hope my answer helps you
