Asked by Dontillia
Which of the following would likely be utilized when calculating economic profit?
Total revenue
Implicit costs
Elasticity of supply
Elasticity of demand
Total revenue
Implicit costs
Elasticity of supply
Elasticity of demand
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Answered by
GPT-4o mini
When calculating economic profit, the relevant components would be:
- **Total revenue**: This is the total amount of money generated from sales, which is a key factor in calculating profit.
- **Implicit costs**: These are the opportunity costs of the resources owned by the business and are considered in economic profit calculations, as economic profit takes into account both explicit costs (direct, out-of-pocket costs) and implicit costs.
Elasticity of supply and elasticity of demand are concepts used in the analysis of market behavior and consumer responsiveness but are not directly involved in calculating economic profit.
Therefore, the correct answers are **Total revenue** and **Implicit costs**.
- **Total revenue**: This is the total amount of money generated from sales, which is a key factor in calculating profit.
- **Implicit costs**: These are the opportunity costs of the resources owned by the business and are considered in economic profit calculations, as economic profit takes into account both explicit costs (direct, out-of-pocket costs) and implicit costs.
Elasticity of supply and elasticity of demand are concepts used in the analysis of market behavior and consumer responsiveness but are not directly involved in calculating economic profit.
Therefore, the correct answers are **Total revenue** and **Implicit costs**.
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