Economic profits are calculated by subtracting:Group of answer choicesimplicit costs from total revenue.explicit costs from total revenue.explicit and implicit costs from total revenue.implicit costs from normal profits.

1-3 Economic profit is the difference between​a.total revenue and the opportunity cost of all of the resources used in production.​b.total revenue and the implicit costs of using owner-supplied resources.​c.accounting profit and the opportunity cost of the market-supplied resources used by the firm.​d.accounting profit and explicit costs.​​

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

1-2 Economic profit​a.is a theoretical measure of a firm’s performance and has little value in real world decision making.​b.can be calculated by subtracting implicit costs of using owner-supplied resources from the firm’s total revenue.​c.is negative when total costs exceed total revenues.​d.is generally larger than accounting profit. ​

Profit computed using explicit costs as the only measure of costs is:Question 16Select one:a.explicit profit.b.accounting profit.c.implicit profit.d.economic profit.

Profit is calculated as revenue minus total costs.Group of answer choicestruefalse PreviousNext