To find economic profit from accounting profit, it is necessary to

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Accounting profit is calculated by simply deducting total costs and expenses from total revenue. On the other hand, economic profit takes into account the opportunity cost of capital, which is the return that could have been earned from the best alternative investment. Therefore, to find economic profit from accounting profit, we need to subtract the opportunity cost of capital.

To Find Economic Profit from Accounting Profit, It Is Necessary