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

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

Quizplus · Accepted Answer

Economic profit considers both explicit (accounting costs) and implicit (opportunity costs) costs, while accounting profit only considers explicit costs. Therefore, if economic profit is negative, accounting profit could still be positive, negative, or zero, depending on the specific costs and revenues.

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