Total revenue minus the implicit and explicit costs of production is profit.

The statement you provided is a definition of economic profit. Here's the step-by-step breakdown:

1. Total Revenue: This is the total income a firm receives from selling its product or service. It's calculated by multiplying the price of the product by the quantity sold.

2. Explicit Costs: These are the direct, out-of-pocket expenses for resources used in production, such as wages, rent, and materials.

3. Implicit Costs: These are the opportunity costs of using resources already owned by the firm. They represent potential income given up by using the firm's resources for one purpose rather than their next best use.

4. Profit: In this context, profit refers to economic profit, which is total revenue minus both explicit and implicit costs. This is different from accounting profit, which only subtracts explicit costs from total revenue.

So, the statement is saying that to calculate economic profit, you subtract both the implicit and explicit costs of production from the total revenue.

The statement you provided is a definition of economic profit. Here's the step-by-step breakdown:

1. Total Revenue: This is the total income a firm receives from selling its product or service. It's calculated by multiplying the price of the product by the quantity sold.

2. Explicit Costs: These are the direct, out-of-pocket expenses for resources used in production, such as wages, rent, and materials.

3. Implicit Costs: These are the opportunity costs of using resources already owned by the firm. They represent potential income that could have been earned if the resources were used in a different way. For example, the opportunity cost of the owner's time and capital.

4. Economic Profit: This is total revenue minus both explicit and implicit costs. It's a measure of the profitability of a business that takes into account both the monetary and opportunity costs of production.

So, if a firm's total revenue is greater than the sum of its explicit and implicit costs, it's making an economic profit. If total revenue is less than the sum of these costs, the firm is making an economic loss.