Economic profit is TR - TC.

Here's the step by step explanation:

1. TR stands for Total Revenue, which is the total income a firm receives from selling its product or service.

2. TC stands for Total Cost, which includes all the costs a firm incurs in producing and selling its product or service. This includes both explicit costs (like wages, rent, and materials) and implicit costs (like the opportunity cost of the owner's time or capital).

3. Therefore, Economic Profit is calculated by subtracting the Total Cost (TC) from the Total Revenue (TR). If the result is positive, the firm is making an economic profit. If the result is negative, the firm is making an economic loss.

Question

Economic profit is TR - TC.

Here's the step by step explanation:

1. TR stands for Total Revenue, which is the total income a firm receives from selling its product or service.

2. TC stands for Total Cost, which includes all the costs a firm incurs in producing and selling its product or service. This includes both explicit costs (like wages, rent, and materials) and implicit costs (like the opportunity cost of the owner's time or capital).

3. Therefore, Economic Profit is calculated by subtracting the Total Cost (TC) from the Total Revenue (TR). If the result is positive, the firm is making an economic profit. If the result is negative, the firm is making an economic loss.

Knowee AI · Accepted Answer

Economic profit is TR - TC.

Here's the step by step explanation:

1. TR stands for Total Revenue, which is the total income a firm receives from selling its product or service.

2. TC stands for Total Cost, which includes all the costs a firm incurs in producing and selling its product or service. This includes both explicit costs (like wages, rent, and materials) and implicit costs (like the opportunity cost of the owner's time or capital).

3. Therefore, Economic Profit is calculated by subtracting the Total Cost (TC) from the Total Revenue (TR). If the result is positive, the firm is making an economic profit. If the result is negative, the firm is making an economic loss.

Economic profit isGroup of answer choicesTR -TC.TR -TFC.TR -TVC.TVC -TFC.

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