If a business’ total economic cost of producing 10,000 units…

JAMB Economics 2023 54 views

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

  1. A normal profit of N750,000
  2. An economic profit of N750,000
  3. An economic profit of N250,000 ✓
  4. A normal profit o N1,750,000

Explanation

This answer correctly explains the economic concept. Economics studies how people make choices about limited resources.

The other options describe different economic ideas or situations. They don’t fit what this question asks.

Remember this economic principle when thinking about money, trade, and how markets work.

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