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

Question

Quizplus · Accepted Answer

Economic profit accounts for both explicit (accounting costs) and implicit (opportunity costs) costs, whereas accounting profit only considers explicit costs. If a company has a positive economic profit, it means it has covered both its explicit and implicit costs, implying that its accounting profit, which only considers explicit costs, would also be positive.

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