Asked by
kaitlyn hernandez
on Nov 04, 2024
Verified
The Wax Works sells 400 candles at a price of $10 per candle. The Wax Works' total costs for producing 400 candles are $500. The Wax Works' economic profit is
A) -$100.
B) $3,500.
C) $4,500.
D) indeterminate from this information.
Economic Profit
The difference between total revenue and total costs, including both explicit and implicit costs, indicating the surplus generated beyond the normal profit expected in a competitive market.
Total Costs
The complete sum of expenses incurred in the production of goods or services, including both fixed and variable costs.
- Master the subject of economic costs, embodying both explicit and implicit costs.
- Calculate economic profit and distinguish it from accounting profit.
Verified Answer
AB
Learning Objectives
- Master the subject of economic costs, embodying both explicit and implicit costs.
- Calculate economic profit and distinguish it from accounting profit.