A return above implicit and explicit cost is called?

Question

a) accountung profit

b) economic profits

c) normal profits

d) total revenue

Answer 1

B  economic profits = account profit-implicit cost.

Answer 2

economic profits

Answer 3

The answer is B) Economic profits.  Accounting profits are subject to GAAP (in the U.S., at least) and do not always accurately reflect the true profit of a venture.  Normal profits are the profits required to keep investment from exiting the venture and seeking other opportunities, and total revenue is how much the product sells for, not profit.  Economic profits are the profits that are above the level required to keep capital in the business, and above what it could earn elsewhere.