To differentiate: Between accounting profit and economic profit and why is economic profit the correct basis for decisions Concept Introduction: Economic profit: The economic profit a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs, explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc… on the other hand implicit cost also known as imputed cost describes as the opportunity cost of anything Accounting profit: The accounting profit of a firm calculated by deducting explicit costs from the total revenue of the firm, the explicit costs are the ordinary costs of the firm such as rent, salaries to the employees and etc…

Question

Want to see the full answer?

Answer 1

Question

Chapter 9, Problem cWYWL

To determine

To differentiate:

Between accounting profit and economic profit and why is economic profit the correct basis for decisions

Concept Introduction:

Economic profit: The economic profit a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs, explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc… on the other hand implicit cost also known as imputed cost describes as the opportunity cost of anything

Accounting profit: The accounting profit of a firm calculated by deducting explicit costs from the total revenue of the firm, the explicit costs are the ordinary costs of the firm such as rent, salaries to the employees and etc…

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

The projects under the 'Build, Build, Build' program: how these projects improve connectivity and ease of doing business in the Philippines?

how utillity relate to microeconomics ?

how opportunity coast relate to Economics ?

Answer 2

Question

Chapter 9, Problem cWYWL

To determine

To differentiate:

Between accounting profit and economic profit and why is economic profit the correct basis for decisions

Concept Introduction:

Economic profit: The economic profit a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs, explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc… on the other hand implicit cost also known as imputed cost describes as the opportunity cost of anything

Accounting profit: The accounting profit of a firm calculated by deducting explicit costs from the total revenue of the firm, the explicit costs are the ordinary costs of the firm such as rent, salaries to the employees and etc…

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 9, Problem cWYWL

To determine

To differentiate:

Between accounting profit and economic profit and why is economic profit the correct basis for decisions

Concept Introduction:

Economic profit: The economic profit a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs, explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc… on the other hand implicit cost also known as imputed cost describes as the opportunity cost of anything

Accounting profit: The accounting profit of a firm calculated by deducting explicit costs from the total revenue of the firm, the explicit costs are the ordinary costs of the firm such as rent, salaries to the employees and etc…

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem cWYWL

To determine

To differentiate:

Between accounting profit and economic profit and why is economic profit the correct basis for decisions

Concept Introduction:

Economic profit: The economic profit a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs, explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc… on the other hand implicit cost also known as imputed cost describes as the opportunity cost of anything

Accounting profit: The accounting profit of a firm calculated by deducting explicit costs from the total revenue of the firm, the explicit costs are the ordinary costs of the firm such as rent, salaries to the employees and etc…

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem cWYWL

To determine

To differentiate:

Between accounting profit and economic profit and why is economic profit the correct basis for decisions

Concept Introduction:

Economic profit: The economic profit a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs, explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc… on the other hand implicit cost also known as imputed cost describes as the opportunity cost of anything

Accounting profit: The accounting profit of a firm calculated by deducting explicit costs from the total revenue of the firm, the explicit costs are the ordinary costs of the firm such as rent, salaries to the employees and etc…

Answer 6

Chapter 9, Problem cWYWL

To determine

To differentiate:

Between accounting profit and economic profit and why is economic profit the correct basis for decisions

Concept Introduction:

Economic profit: The economic profit a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs, explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc… on the other hand implicit cost also known as imputed cost describes as the opportunity cost of anything

Accounting profit: The accounting profit of a firm calculated by deducting explicit costs from the total revenue of the firm, the explicit costs are the ordinary costs of the firm such as rent, salaries to the employees and etc…

Answer 7

Chapter 9, Problem cWYWL

To determine

To differentiate:

Between accounting profit and economic profit and why is economic profit the correct basis for decisions

Concept Introduction:

Economic profit: The economic profit a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs, explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc… on the other hand implicit cost also known as imputed cost describes as the opportunity cost of anything

Accounting profit: The accounting profit of a firm calculated by deducting explicit costs from the total revenue of the firm, the explicit costs are the ordinary costs of the firm such as rent, salaries to the employees and etc…

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 9 - Prob. aWYWL Ch. 9 - Prob. bWYWL Ch. 9 - Prob. cWYWL Ch. 9 - Prob. dWYWL Ch. 9 - Prob. eWYWL Ch. 9 - Prob. fWYWL Ch. 9 - Prob. 1QFT Ch. 9 - Prob. 2QFT Ch. 9 - Prob. 3QFT Ch. 9 - Prob. 1P

Concept explainers

Want to see the full answer?

Chapter 9 Solutions