Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / A firm is earning an accounting profit of $15,000
A firm is earning an accounting profit of $15,000. Its implicit costs are $2,000, explicit costs are $10,000, and its economic profit is $13,000. What must its total revenue be?
$16,000
$25,000
$28,000
$30,000
Indeterminate
Computation of Total Revenue:
Accounting Profit = Total Revenue - Explicit Costs
$15,000 = Total Revenue - $10,000
Total Revenue = $15,000+$10,000
Total Revenue = $25,000
So, the correct option is 2nd "$25,000".
