Arrange the following steps in the correct order to calculate economic profit considering opportunity cost: A) Identify total revenue B) Subtract total explicit costs C) Subtract opportunity costs D) Determine economic profit

To calculate economic profit while considering opportunity costs, you first need to identify total revenue, which is the money earned from selling goods or services. Next, you subtract total explicit costs, which are the direct costs like wages or materials you pay for in running your business. After that, you subtract opportunity costs, which represent the income you could have earned if you chose the next best alternative instead of your current choice. Finally, you can determine economic profit by taking the result from the previous steps, which shows how much profit you are truly making after accounting for all costs. For example, if your total revenue is $100, explicit costs are $40, and opportunity costs are $30, your economic profit would be $30 ($100 - $40 - $30).