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

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 is D

Economic profit = Total revenue(Output) - Opportunity cost of input

= 1,000,000 - 750,000

= 250,000