A manufacturing company has the following cost data for a week: Total revenue = ₦800,000; Explicit costs = ₦600,000; Implicit costs = ₦150,000. What is the firm's economic profit?

Economic profit accounts for both explicit (out-of-pocket) and implicit (opportunity) costs. Total economic cost = ₦600,000 + ₦150,000 = ₦750,000. Economic profit = Total revenue − Total economic cost = ₦800,000 − ₦750,000 = ₦50,000. Option A (₦200,000) is the accounting profit, which ignores implicit costs, a common distractor.