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Complete the sentences to illustrate how economists and accountants view profit differently. Economic profit is always zero.typically higher than accounting profit.typically lower than accounting profit. Economic costs and accounting costs differ because accountants include both explicit and implicit costs.only explicit costs.only implicit costs.neither explicit nor implicit costs. Economic costs and accounting costs differ because economists include neither explicit nor implicit costs.only explicit costs.both explicit and implicit costs.only implicit costs.

Respuesta :

funmilaciousfunmie78

Answer:

In conclusion, Economic profit is lower than accounting profit because Economic profit = Accounting profit - implicit costs .

Explanation:

The monetary costs and opportunity costs a firm pays and the revenue a firm receives is referred to as Economic profit.

Economic profit = total revenue – (explicit costs + implicit costs).

The monetary costs a firm pays out and the revenue a firm receives. It is the bookkeeping profit is referred to as Accounting profit. It is usually higher than economic profit.

Accounting profit = total monetary revenue- total costs.

The difference between total monetary revenue and total costs gives rise to economic profit (but total costs include both explicit and implicit costs).

Economic profit includes the opportunity costs associated with production . Therefore Economic cost is always lower than accounting profit.

In conclusion, Economic profit is lower than accounting profit because Economic profit = Accounting profit - implicit costs .

henrydesanta

Answer:

Economic cost and Accounting costs are different because Accounting costs only include Explicit costs while Economic costs include both Explicit and Implicit costs.

Because of this, the accounting costs most of the time only reflects the financial aspect while the economic cost reflects the whole picture.

Explanation:

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