Answer to Question #45418 in Microeconomics for Dion Lewis

Question

Economic profit is ...

Select one:
a. the difference between accounting profit and explicit costs.
b. the difference between accounting profit and the opportunity cost of the market-supplied resources used by the firm.
c. the difference between total revenue and explicit costs.
d. the difference between total revenue and the opportunity cost of all the resources used in production.

Answer 1

Economic profit is the difference between accounting profit and theopportunity cost of the market-supplied resources used by the firm.
So, the right answer is B.