Economic profit is:

Name: Economic profit is:
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Question

Economic profit is:

Quizplus · Accepted Answer

Economic profit takes into account both explicit costs (such as wages, rent, and materials) and implicit costs (such as the opportunity cost of using resources for other purposes). If implicit costs are greater than zero (meaning that the resources used could have been used to generate income elsewhere), the economic profit will be less than the accounting profit. Therefore, option D is correct.

Economic Profit Is