If a firm had negative economic profits (i.e. ,economic losses),but did make an accounting profit,we may conclude that

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Quizplus · Accepted Answer

Accounting profit only takes into account explicit costs, while economic profit considers both explicit and implicit costs. Thus, if a firm has negative economic profit but positive accounting profit, it must be earning enough revenue to cover its explicit costs but not enough to cover its implicit costs. Therefore, we can conclude that implicit costs are positive.

If a Firm Had Negative Economic Profits (I