15738285953355884868995920991091.jpg - Two Sides to Every Business Firm Accounting Profit vs Economic Profit Accounting Profit The difference between

15738285953355884868995920991091.jpg - Two Sides to Every...

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Unformatted text preview: Two Sides to Every Business Firm Accounting Profit vs. Economic Profit . Accounting Profit: . The difference between total revenue and explicit costs . Economic Profit: . The difference between total revenue and total cost, including both explicit and implicit costs . Economic profit is usually lower (never higher) than accounting profit because it includes implicit costs Economic profit = Total revenue - Total cost (Explicit costs + Implicit costs)...
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