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Economics - Financial Markets 13 Online
OpenStudy (anonymous):

why is accounting profit never less than economic profit?

OpenStudy (anonymous):

Because accounting profits always leave out opportunity costs. Economic costs are always higher then accounting costs, so accounting profits are always higher then economic profits.

OpenStudy (anonymous):

You have your answer from KansasEconomist. I guess I am a North Carolina economist. wmw

OpenStudy (anonymous):

Here is an illustrating example.... The cost of going to a movie on the night of the final exam.... Economic Cost = Explicit Cost (=Accounting cost) + Implicit Cost = price of ticket + Getting a bad grade Hope this helps...

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