When implicit costs exist,economic profit will be less than accounting profit.

Name: When implicit costs exist,economic profit will be less than accounting profit.
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Accounting profit only takes into account explicit costs (monetary expenses such as wages, rent, etc.) while economic profit considers both explicit and implicit costs (opportunity costs such as time, forgone opportunities, etc.). Therefore, when implicit costs exist, economic profit will always be lower than accounting profit.

When Implicit Costs Exist,economic Profit Will Be Less Than Accounting