Microeconomics (MindTap Course List)
10th Edition
ISBN: 9781285859484
Author: William Boyes, Michael Melvin
Publisher: Cengage Learning
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Question
Chapter 9, Problem 14E
To determine
To discuss:
The importance of theaccounting profit and the economic profit.
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Consider the concepts of accounting profit and economic profit. Suppose you are a consultant and you are meeting with a business owner who is trying to decide whether to keep that business open or open a business in a different industry. Discuss the differences between accounting profit and economic profit and why it should matters in this circumstance.
Microeconomic
Chapter Eight
Distinguish between a firm's explicit costs and its implicit costs and between a firm's accounting profit and its economic profit.
Distinguish between accounting profit, economic profit, and normal profit. Does accounting profit or economic profit determine how entrepreneurs allocate resources between different business ventures? Explain.
Chapter 9 Solutions
Microeconomics (MindTap Course List)
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- Give typing answer with explanation and conclusion If Thomas made an accounting profit of $45,000 in his business last year, but he did not take into account of the implicit or opportunity costs of his resources he:arrow_forwardModified True or False: State whether each statement is true or false. If the statement is false, briefly explain why it is so, and then restate it to make it true. Zero economic profit implies zero accounting profit.arrow_forwardCreamy Crisp's accounting profit isarrow_forward
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