When a company's accounting profit is positive, what will the economic profit be?

Name: When a company's accounting profit is positive, what will the economic profit be?
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Question

Quizplus · Accepted Answer

Economic profit considers both explicit and implicit costs, including opportunity costs, whereas accounting profit only considers explicit costs. Therefore, even if a company has a positive accounting profit, its economic profit could be positive, negative, or zero depending on the magnitude of its implicit costs.

When a Company's Accounting Profit Is Positive, What Will the Economic