Economic profits are ?
Correct answer: B. anything greater than the normal opportunity cost of investing
- A. the difference between total revenue and total costs.
- B. anything greater than the normal opportunity cost of investing
- C. the opportunity costs of all inputs
- D. a rate of profit that is just sufficient to keep owners and investors satisfied
Explanation
Economic profit is the return left after covering all opportunity costs, including the normal return needed to keep the investment in its current use. Any return above that normal opportunity cost is economic profit.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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