anonymous
  • anonymous
why is accounting profit never less than economic profit?
Economics - Financial Markets
  • Stacey Warren - Expert brainly.com
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SOLVED
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katieb
  • katieb
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anonymous
  • 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.
anonymous
  • anonymous
You have your answer from KansasEconomist. I guess I am a North Carolina economist. wmw
anonymous
  • 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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