Suppose that the implicit cost for a business was $1,000 and the explicit cost was $5,000 and that the firm sold 1,000 units of its products at $6 per item. We can conclude that the firm's

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The accounting profit can be calculated by subtracting explicit costs from total revenue, which would be ($6 x 1,000) - $5,000 = $1,000. The economic profit would consider both the explicit and implicit costs, which would be ($6 x 1,000) - $5,000 - $1,000 = $0. Therefore, the accounting profit is $1,000 and economic profit is $0.

Suppose That the Implicit Cost for a Business Was $1,000