Consider a firm that employs some resources that are owned by the firm.When accounting profit is zero,economic profit

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Economic profit takes into account both explicit and implicit costs, including the opportunity cost of resources owned by the firm. If accounting profit is zero, it means the firm has only covered its explicit costs. The implicit costs, including the opportunity cost of owned resources, are not covered, leading to a negative economic profit and a reduction in shareholder wealth.

Consider a Firm That Employs Some Resources That Are Owned