Question
Select the best answer.
This is what remains after all accounting costs have been paid.
economic profit
total profit
accounting profit
This is what remains after all accounting costs have been paid.
economic profit
total profit
accounting profit
Answers
GPT-4o mini
The best answer is **economic profit**.
Economic profit is what remains after all accounting costs and implicit costs (opportunity costs) have been deducted from total revenue. Accounting profit, on the other hand, only considers explicit costs. Total profit is a broader term that can refer to either of these profits.
Economic profit is what remains after all accounting costs and implicit costs (opportunity costs) have been deducted from total revenue. Accounting profit, on the other hand, only considers explicit costs. Total profit is a broader term that can refer to either of these profits.