Question

Economic profit is equal to total revenue minus the Question 40 options: a) accounting cost of producing goods and services. b) explicit cost of producing goods and services. c) implicit cost of producing goods and services. d) opportunity cost of producing goods and services.

Answer 1

.Answer:

B) explicit cost of producing goods and services.

C) implicit cost of producing goods and services.

Explanation:

We know,

Economic profit = Total revenue - the explicit cost of producing goods and services - the implicit cost of producing products and services.

On the other hand, accounting profit = Total revenue - Total explicit cost

Through economic profit, a country or an industry can measure profitability after deducting monetary and opportunity costs from revenue.

Therefore B and C is the answer.