Answer to Question #27392 in Economics of Enterprise for fanura
Your firm has total sales revenue of $1,000,000 and total explicit costs of $600,000 and total implicit cost of $300,000. What will be the accounting profit for the firm? What will be the economic profit for the firm? Explain the difference using the data.
Implicit costs (or opportunity costs) represent the divergence between economic profit (total revenues minus total costs, where total costs are the sum of implicit and explicit costs) and accounting profit (total revenues minus only explicit costs). Since economic profit includes these extra opportunity costs, it will always be less than or equal to accounting profit.
I would definitely recommend this site for any help. I was relieved from stress by having assignment expert help me. Everything was completed in a timely manner and never have to remind them when something is due. Assignment Expert will always give you the best options available!! Thanks Assignment Expert!!!