Question

Economic profits are equal to __________.A. total revenues minus the opportunity cost of labor. B. total revenues minus total fixed costs. C. total​ revenues, after​ tax, minus cost of goods sold. D. total revenues minus the implicit and explicit costs of all inputs used.

Answer 1

D. total revenues minus the implicit and explicit costs of all inputs used.

Step-by-step explanation:

Economic profits -

It refers to the monetary value and opportunity cost of the firm pays and the amount of revenue a firm gets , is referred to as economic profit.

The economic profit can be calculated as the difference of the revenue received from the sale of the output and the cost of all the inputs .

i.e. ,

Economic profit = total revenue – (explicit costs + implicit costs).

Hence , from the given information of the question,

The correct option is D.