The difference between economic profit and accounting profit is equal to:
A) zero.
B) implicit and explicit costs.
C) implicit and explicit revenues.
D) implicit revenues minus implicit costs.

Question

Quizplus · Accepted Answer

Economic profit accounts for both explicit and implicit costs, while accounting profit only considers explicit costs. Therefore, the difference between them is the implicit costs, which is represented by implicit revenues minus implicit costs.

The Difference Between Economic Profit and Accounting Profit Is Equal