Which of the following would explain why accounting profit might be greater than economic profit?

Question

Quizplus · Accepted Answer

Economic profit takes into account both explicit costs (such as wages and rent) and implicit costs (such as the opportunity cost of using the owner's capital or time for the business). Accounting profit only considers explicit costs, which means it is possible for accounting profit to be greater than economic profit if there are significant implicit costs involved in running the business. Choices B, C, and D do not accurately explain why accounting profit might be greater than economic profit.

Which of the Following Would Explain Why Accounting Profit Might