2. Economic profit is equal to total revenue minus

a. implicit costs.

b. explicit costs.

c. the sum of implicit and explicit costs.

d. marginal costs.

e. variable costs. Use the following information to answer questions 3 and 4. Madelyn owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for $100 each. It costs Madelyn $20,000 for the raw materials to produce the 1,000 pieces of pottery. She has invested $100,000 in her factory and equipment: $50,000 from her savings and $50,000 borrowed at 10 percent (assume that she could have loaned her money out at 10 percent. too). Madelyn can work at a competing pottery factory for $40,000 per year.