When calculating economic profit, the factor that would likely be utilized is:
Foregone alternatives
Economic profit takes into account not only the explicit costs (like total revenue) but also the implicit costs, which include foregone alternatives (opportunity costs). This means considering what you must give up to pursue the current investment or business decision.
While total revenue is also relevant in the broader context of profitability, it's the opportunity costs that are specifically key to calculating economic profit. Elasticity of demand and liquidity are not directly required for this calculation.
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