Which of the following statements is correct?

A) Assuming that explicit costs are positive, economic profit is greater than accounting profit.
B) Assuming that implicit costs are positive, accounting profit is greater than economic profit.
C) Assuming that explicit costs are positive, accounting profit is equal to economic profit.
D) Assuming that implicit costs are positive, economic profit is positive.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, representing the additional value created by the firm.

Accounting Profit

Accounting profit is the financial gain calculated by subtracting total explicit costs from total revenue.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs necessary for the production of goods or services.