Complete the following table by determining Hubert's accounting and economic profit of his boat business. Profit (Dollars) Accounting Profit Economic Profit Alternatively, the economic profit he would earn as an accountant would be $ If Hubert's goal is to maximize his economic profit, he True or false: Hubert is earning a normal profit. True False stay in the boat business.
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Implicit cost refers to the opportunity cost which is involved in doing a business. It is not a monetary payment but a loss incurred by giving up the next best alternative while making a decision.
Explicit cost requires a monetary payment. This is the actual cost that a firm bears while doing a business.
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