It is not possible to earn an economic profit without also earning an accounting profit.

Name: It is not possible to earn an economic profit without also earning an accounting profit.
Brand: Quizplus
Rating: 4.7 (50 reviews)

Question

Quizplus · Accepted Answer

Economic profit takes into account both explicit (accounting) costs and implicit (opportunity) costs, whereas accounting profit only considers explicit costs. Therefore, if a firm is earning an economic profit, it must also be covering all its explicit costs, thus earning an accounting profit.

It Is Not Possible to Earn an Economic Profit Without