Economic and accounting costs will differ:

Name: Economic and accounting costs will differ:
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Question

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Economic costs take into account all implicit and explicit costs, including the opportunity cost of using resources. Accounting costs only consider explicit costs, such as wages paid to workers and rent paid for the use of buildings. Therefore, economic costs will be greater than accounting costs when any factor of production is not paid an explicit factor payment equal to its market value.

Economic and Accounting Costs Will Differ