Economic Profit Is Equal to Total Revenue Minus

question 17

Multiple Choice

Economic profit is equal to total revenue minus

• A) variable costs.
• B) implicit costs.
• C) explicit costs.
• D) marginal costs.
• E) implicit and explicit costs.

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Definitions:

Unit Sales

The quantity of items or products sold, not taking into account the selling price or revenue generated.

Variable Cost

Costs that change in proportion to the level of production or sales volume.

Net Operating Income

A company's total income from its operations, excluding taxes and interest.

Monthly Sales

The total revenue generated from sales activities during a specific month.