Economic Profits Are Calculated By

question 37

Multiple Choice

Economic profits are calculated by:

• A)taking the difference between total revenue and the sum of explicit and implicit costs.
• B)taking the difference between total revenue and explicit costs only.
• C)taking the difference between the total revenue and implicit costs only.
• D)summing total revenue,explicit costs,and implicit costs.

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Definitions:

Consumers

Individuals or entities that purchase goods or services for personal use as opposed to resale or commercial purposes.

Business Ethics

A set of principles and moral values in business that guide behaviors and decision-making.

Correct Decisions

Choices or judgments that are accurate, effective, and based on appropriate consideration of facts and rational analysis.

Standards

Established norms or criteria defining technical specifications, quality benchmarks, and practices intended to ensure reliability, safety, and compatibility in products, services, or processes.