Total revenue minus both explicit and implicit costs is called
A)accounting profit.
B)economic profit.
C)average total cost.
D)total cost.

Question

Quizplus · Accepted Answer

Total revenue minus both explicit and implicit costs is called economic profit. Accounting profit only takes into account explicit costs, whereas economic profit considers both explicit and implicit costs. Average total cost is the total cost divided by the quantity of output produced, and total cost is the sum of explicit and implicit costs.

Total Revenue Minus Both Explicit and Implicit Costs Is Called