What is the difference between accounting profit and, Ask an Expert

Economics

What is the difference between accounting profit and economic profit?

Accounting Profit:

The accounting profit of a business is the revenue of business minus the explicit costs and depreciation.

Economic Profit:

The economic profit of a business is the revenue of business minus the opportunity cost of its resources. This is frequently less than the accounting profit.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9581492

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