Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 8 - Production Technology and Cost - Exercises - 8.1 Economic Cost and Economic Profit - Page 203: 1.3

Answer

Economic profit equals total revenue minus economic cost.

Work Step by Step

The economic cost is the sum of explicit and implicit costs of all inputs required for the production of goods. The total revenue is the money made by selling the produced goods. Economic profit = total revenue - economic cost.
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