A firm's economic profit is:?

Question

a)usually lower than its normal profit.

b)profit over and above that which it needs to compensate for the time and other resources the owner supplies to the business.

c) a cost of production

d) a signal to the firm that it is producing too much output

Answer 1

B for sure.

Economic profit= accounting profit-total cost including all opportunity cost

Answer 2

It's B. Found out on Wikipedia.

Answer 3

I agree with my two learned friends above me. B is the answer. A, C and D are ridiculous.