Accounting versus economic profits

Key Questions

• What is an economic profit?

  Answer:

  Economic Profit =Total Revenue - Economics Cost

  Explanation:

  Economic Profit =Total Revenue - Economics Cost
  Economics Cost = Explicit Cost + Implicit Cost + Normal Profit.

  Nallasivam V · 1 · Oct 11 2015

• How does one calculate accounting costs?
• How can one apply accounting costs to economic costs?
• What is an economic profit?
• In the absence of barriers to entry, what eventually happens to economic profits in an industry?