Get the most out of your questions with IDNLearn.com's extensive resources. Join our interactive Q&A community and get reliable, detailed answers from experienced professionals across a variety of topics.
Sagot :
Answer:
The concept of economic profit ....... alternative two options.
If economic profit is positive .......... Current option.
If economic profit is negative............ Other option
Explanation:
Economic Profit is the excess of revenue associated with an option, over its costs (explicit external & implicit opportunity costs).
Example : Revenue - Direct explicit cost of production - opportunity cost (like interest on money invested, salary of job left foregone).
The concept is used to make decision between two alternative options. Given, zero economic profits imply indifference.
Positive Economic Profit implies - one should choose Current option, as it will make Better off , having more benefit than other option
Negative Economic Profit implies - one should choose Other option, as it wil make better off, having more benefit than the former considered option.
We value your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. For dependable answers, trust IDNLearn.com. Thank you for visiting, and we look forward to assisting you again.