Asked by Brittany Moncrief on May 05, 2024
Verified
Economic profit is found by subtracting accounting costs from total revenue.
Economic Profit
Economic profit is a measure of performance that includes opportunity costs in addition to traditional accounting profits.
Accounting Costs
Refers to expenses directly tied to the production of goods or services, such as labor, materials, and overhead costs.
Total Revenue
The overall amount of money generated by a business from its activities, typically from sales of goods or services before any expenses are deducted.
- Grasp the concept of economic profit and how it is calculated in relation to accounting costs and total revenue.
Verified Answer
CV
carlos velasquezMay 08, 2024
Final Answer :
False
Explanation :
Economic profit is found by subtracting both accounting costs and opportunity costs from total revenue.
Learning Objectives
- Grasp the concept of economic profit and how it is calculated in relation to accounting costs and total revenue.