The following table shows the annual income statement of Max Computers.Table 9.3

-Refer to Table 9.3. The economic profit of Max Computers is:
A)$1,000 million.
B)-$4,000 million.
C)$10,000 million.
D)-$5,000 million.
E)$5,000 million.

Question

The following table shows the annual income statement of Max Computers.Table 9.3
 
-Refer to Table 9.3. The economic profit of Max Computers is:
A)$1,000 million. 
B)-$4,000 million. 
C)$10,000 million. 
D)-$5,000 million. 
E)$5,000 million.

Quizplus · Accepted Answer

Economic profit is calculated by subtracting both explicit and implicit costs from total revenue. Without the specific details from Table 9.3, it's impossible to calculate or verify the economic profit of Max Computers. However, based on the choices provided, if B is the correct answer, it suggests that the total costs (explicit plus implicit) exceeded the total revenue by $4,000 million, resulting in a negative economic profit.

The Following Table Shows the Annual Income Statement of Max