6 min read
This study guide covers profit maximization in AP Microeconomics, focusing on accounting profit, economic profit, normal profit, and supernormal profit. It explains how to calculate each type of profit, including explicit and implicit costs. The guide also discusses how firms respond to profits and losses, and provides practice questions and exam tips.
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Question 1 of 12
🎉 Profit occurs when a company's:
Total costs exceed total revenue
Total revenue is equal to total costs
Total revenue is greater than total costs
Explicit costs are greater than implicit costs