Econ 247 certification Study guides, Class notes & Summaries

Total Revenuethe amount a firm receives for the sale of its output Total Costthe amount that the firm pays to buy inputs Total Profittotal revenue - total cost Explicit costsinput costs that require an outlay of money by the firm Implicit costDo not require a cash outlay economic profittotal revenue minus all opportunity costs, explicit and implicit of producing the good and services sold.