For a given company, economic profit will always be greater than accounting profit.

Name: For a given company, economic profit will always be greater than accounting profit.
Brand: Quizplus
Rating: 4.7 (31 reviews)

Question

Quizplus · Accepted Answer

Economic profit takes into account both explicit and implicit costs, including opportunity costs, while accounting profit only considers explicit costs. Therefore, economic profit can be less than accounting profit if the implicit costs are significant.

For a Given Company, Economic Profit Will Always Be Greater