What is the difference between Economic Profit and Accounting profit?

Q: i just need a short answer like an examples please . .. Use an appropriate example from your…

A: Accounting profit takes into account only explicit cost while economic profit takes implicit cost as…

Q: Do firms really equate their marginal cost with marginal revenue?

A: Answer

Q: What would be the value of economic profit if explicit cost is $200, implicit cost is $150 and total…

A: The data presented in the question above is:- Explicit cost of the firm = $200 Implicit cost of firm…

Q: Many firms in the United States file for bankruptcy every year, yet they still continue operating.…

A: The costs of production include both the fixed costs as well as the variable costs. The fixed costs…

Q: How do the concepts of accounting profit and economic profit differ? Why is economic profit smaller…

A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…

Q: During the recent auto sales slump, GM, Ford, and Chrysler decided it was cheaper to sell cars to…

A: The article mentions anout selling cars at a loss. It is referring to economic cost.

Q: What is the relationship between a firm’s total revenue, profit, and total cost?

A: Total revenue (TR) is the amount earned by the firm by selling its goods. Total Cost (TC) is the…

Q: If marginal profit is negative what information can you infer about marginal cost and marginal…

A: Marginal profit is given as :- Marginal profit = Marginal revenue - Marginal cost It's given that…

Q: Briefly describe the flow of costs in a manufacturing company?

A: Cost flow refers to how or the direction by which costs pass through a organization. Usually, the…

Q: Explain the difference between accounting and economic profit. Give two examples of when they…

A: Accounting profit means that profit which is earned after the explicit costs are deducted from…

Q: 2.9 [Related to the Apply the Concept: “Fixed Costs in the Publishing Industry" D] A Federal Reserve…

A: Meaning of Cost: The term "cost" describes the circumstances in which a business incurs different…

Q: What is profit

A: Profit = Revenue - costs

Q: Use your own example to clearly differentiate between an "accounting profit" and an "economic…

A: When talking about the difference between economic and accounting profit, it can be said that…

Q: Consider the concepts of accounting profit and economic profit.  Suppose you are a consultant and…

A: Profit is the surplus value that is generated in a process of production, which usually accrues to…

Q: What are some of the implicit cost incurred by an entrepreneur in running a firm? How are these…

A: The opportunity cost refers to the value of the next best alternative sacrificed when an individual…

Q: How can we Determine Accounting Profit?

A: Profit is the income that the fourth factor of production, i.e. enterprise, generates from an…

Q: What happens to fixed cost as the quantity produced increases?

A: In the market, when a firm makes production activities, there are various costs incurred during this…

Q: What is average profit margin means?

A: Profit margin is calculated by dividing income by sales to determine how profitable a firm or…

Q: what are the maximum profits this firm can earn?

A: A competitive market is a typical market that answers the demands for goods and services. A…

Q: With the help of an example explain the difference between accounting and economic profit. Building…

A: The term perfect t competition refers to a theoretical market structure. during a perfect…

Q: How do you derive the marginal cost (MC) curve of a firm? Explain.     Answer question step by…

A: The total cost of a firm is the cost of producing the products which is the sum of total fixed and…

Q: What is meant by normal profit?

A: The total revenue earned by a firm operating in a market is the sum of payments received from the…

Q: Kelly is a clerk and she earns $80,000 per annum. She thinks her salary is too low and decides to…

A: Accounting profit takes into consideration only out of pocket expense as the cost but the economic…

Q: What is the marginal cost for this product?

A: A cost function refers to the formula that is used to predict the cost that the firm will incur at a…

Q: What is the LAW OF DIMINISHING RETURNS, and why is this law considered a short-run phenomenon?

A: The Law of Diminishing Return: It occurs when the employment of input with the other fixed input of…

Q: Why does exit occur?

A: When the firms earn less than their total cost of production, they make loss. If existing firms in…

Q: Your uncle is thinking about to open a fish & chips restaurant. He estimated that it would cost…

A: In economics, explicit cost is the direct cost of choosing an alternative and make expenditure on…

Q: What is the firms profit or loss?

A: Since the marginal revenue of the firm is above the average total cost and the marginal cost the…

Q: Georgia quit her old job where she had been earning $50,000 a year to start her own business. She…

A: Explicit cost: It is the actual monetary expenditure made during the operation of a business.…

Q: Can a firm earn an economic loss and an accounting profit at the same time?

A: The measure that depicts distribution of income to owner in a profitable process of production in…

Q: What is the difference between economic profit and accounting profit?

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Ball Bearings, Inc., faces costs of production as follows:a. Calculate the company’s average fixed…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: Define and explain the differences between accounting profit and economic profit

A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…

Q: How to Determine "Accounting Profit"

A: Accounting profit refers to the net operating income, which comes after deducting cost of land, cost…

Q: What is Product Expansion?

A: Product Expansion -It is the expansion of economic activity as well as the production levels from…

Q: Why is a normal profit considered an economic cost?

A: Why is a normal profit considered an economic cost?  Normal profit is an economic term, refers to a…

Q: How profit is different from the incorporating normal profit and when the normal profit is into…

A:

Q: The blue line on the following graph shows a firm's daily costs for the first 90 days of the fiscal…

A: The area of shaded region will be equal to area of triangle OAB minus area of triangle OCD

Q: You are working for a company that does helicopter tours of the Grand Canyon. So far, you have…

A: (a) Initial total cost (TC1) = 500 By organising an additional tour, new average cost = 55 Hence,…

Q: How does a change in the response rate affect profit?

A: A response rate refers to a rate that shows the number of people or participants who have responded…

Q: How is it possible to have positive accounting profit and negative economic profit concurrently?

A: Answer: Let us first understand the difference between accounting profit and economic profit.…

Q: How do you derive the marginal cost (MC) curve of a firm? Explain.    use graph.

A: The marginal cost represents the change in the total cost of production that results in one new unit…