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

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
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • 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
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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