If a business' total economic cost of producing 10,000 units of a product is N750,000...

JAMB 2023

If a business' total economic cost of producing 10,000 units of a product is N750,000 and this output is sold to consumers for N1,000,000, then the firm would earn

A. A normal profit of N750,000
B. An economic profit of N750,000
C. A normal profit o N1,750,000
D. An economic profit of N250,000

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Correct Answer: Option D

Explanation

Economic profit = Total revenue(Output) - Opportunity cost of input
= 1,000,000 - 750,000
= 250,000

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If a business' total economic cost of producing 10,000 units of a product is N750,000...

Correct Answer: Option D

Explanation

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