Asked by Taylor Brazeau on Jul 20, 2024
Verified
Assuming a typical firm has some implicit costs,in the long run a perfect competitor earns ________ accounting profit and __________ economic profit.
Implicit Costs
These refers to the opportunity costs that are not directly paid or incurred but represent the foregone benefits from using resources in a particular way.
Economic Profit
The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial success exceeding the opportunity cost of resources.
Accounting Profit
The net income for a company calculated by subtracting total expenses from total revenues according to accounting principles, not including implicit costs.
- Differentiate between accounting profit and economic profit.
Verified Answer
Learning Objectives
- Differentiate between accounting profit and economic profit.
Related questions
The Sole Proprietor of the Milwaukee Machine Company Receives All ...
Chloe Gives Piano Lessons for $15 Per Hour ...
Suppose That for a Particular Business There Are No Implicit ...
If You Had Economic Profits of $50,000,implicit Costs of $100,000,and ...
Economic Profits Are Calculated by Subtracting ...