What is defined as economic profit?

Economic profit is defined as the income remaining after all costs of production have been taken into account, which includes both explicit costs (like wages, rent, and materials) and implicit costs (such as opportunity costs of capital and time). This comprehensive view takes into account the total cost of utilizing resources in their next best alternative, which differentiates economic profit from accounting profit.

When considering the other options, the total income after fixed costs are deducted only accounts for a portion of the overall costs and thus does not reflect the complete scope of economic profit. The income reported by businesses after taxes focuses on the net income from an accounting perspective, failing to capture the concept of implicit costs. Lastly, the total revenue generated from a business simply indicates how much money was brought in without considering any costs, therefore not providing insight into profits in the economic sense.

Thus, option B correctly encapsulates the idea that economic profit includes all costs associated with production, leading to a more thorough understanding of a business's profitability.