Question & Answer: 20. Which of the following statements is correct?…..

20. Which of the following statements is correct?

a. Economic profit is the difference between total revenue and implicit costs.

b. Economic profit is generally greater than accounting profit.

c. Economic profit is the difference between total revenue and the full opportunity cost of all the resources used in production.

d. Economic profit is the difference between total revenue and explicit costs.

Expert Answer

 

Economic profit is the difference between total revenue and the full opportunity cost of all the resources used in production. is a true statement

So the option is C.Economic profit is the difference between total revenue and the full opportunity cost of all the resources used in production.

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