A firm has $200 million in total revenue and explicit costs of $190 million. Suppose its owners have invested $100 million in the company at an opportunity cost of 10 percent interest rate per year. The firm's economic profit is:.1. $400 million2. $100 million3. $80 million4. Zero

The answer us 4. Zero

Explanation:

Economic profit equals explicit cost minus implicit cost.

Explicit cost is also known as the accounting cost. It is the cost that are directly related or attributed to the production.

Implicit cost is the opportunity cost. It it the cost cost of the alternative forgone. The cost of the idea or business that wasn't chosen.

Explicit cost is $190 million

Implicit cost is $10 million( 10percent of $100million)

Total revenue is $200 million.

Therefore, economic profit is

($200 - $190 - 10)million.

= 0 or zero

idk

explanation:

idk