Economic profit is calculated as follows: Revenue ? Explicit Costs ? Implicit Costs = Economic ProfitImplicit costs are the opportunity costs of the assets that are used in the operation of the business. Of the choices presented, this is the best choice.
Economic profit is calculated as follows: Revenue ? Explicit Costs ? Implicit Costs = Economic ProfitFixed and variable costs represent only the explicit costs of the company so this is not how economic profit is calculated.
Economic profit is calculated as follows: Revenue ? Explicit Costs ? Implicit Costs = Economic Profit Variable costs are only part of the explicit costs of the company so this is not how economic profit is calculated.
Economic profit is calculated as follows: Revenue ? Explicit Costs ? Implicit Costs = Economic ProfitRecurring operating costs are only part of the explicit costs of the company so this is not how economic profit is calculated.
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