An _________________ is calculated by subtracting the firm’s costs from its total revenues, _______________________________ .
A. accounting profit; excluding opportunity cost
B. accounting profit; including opportunity cost
C. economic profit; excluding opportunity cost
D. opportunity cost; including economic profit
Answer:A
An _________________ is calculated by subtracting the firm’s costs from its total revenues, _______________________________ .
A. accounting profit; excluding opportunity cost B. accounting profit; including opportunity cost C. economic profit; excluding opportunity cost D. opportunity cost; including economic profit
Explanation: 8. Economic profit can be derived from calculating total revenues minus all of the firm’s costs,