Accounting profit minus implicit costs is equal to
A) total revenue.
B) economic profit.
C) explicit costs.
D) fixed and variable costs.
E) the value of not operating this business.

Question

Quizplus · Accepted Answer

Accounting profit only considers explicit costs, whereas economic profit considers both explicit and implicit costs. Therefore, subtracting implicit costs from accounting profit gives the economic profit.

Accounting Profit Minus Implicit Costs Is Equal to