Economic profit differs from accounting profits because of its inclusion of:
A) explicit costs.
B) incidental costs.
C) potential costs.
D) implicit costs.

Question

Quizplus · Accepted Answer

Economic profit differs from accounting profits because it takes into account implicit costs. Implicit costs are the opportunity costs of using resources for one purpose rather than for their best alternative use, and they are not reflected in accounting profits.

Economic Profit Differs from Accounting Profits Because of Its Inclusion