Asked by Cameron Hutton on Jun 24, 2024
Verified
For a firm, its economic profit is usually greater than its accounting profit.
Output to Supply
The process of producing and providing goods or services to meet demand.
Firms
Business organizations engaged in professional, commercial, or industrial activities, aiming to generate profits.
- Comprehend the difference between economic profit and accounting profit.
Verified Answer
TB
Turky BasahelJul 01, 2024
Final Answer :
False
Explanation :
Economic profit takes into account both explicit and implicit costs, including opportunity costs, while accounting profit only considers explicit costs. Therefore, economic profit is usually less than accounting profit because it includes a broader range of costs.
Learning Objectives
- Comprehend the difference between economic profit and accounting profit.
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