mariahrpoulin1202 mariahrpoulin1202
  • 07-03-2019
  • Business
contestada

As long as there are ____ costs, ____ profit will be greater than ____ profit.

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mirrorkitten
mirrorkitten mirrorkitten
  • 17-03-2019

The answer is: As long as there are economic costs, accounting profit will be greater than economic profit.

Economic costs are defined as the opportunity cost incurred when processing inputs for production, while economic profit is defined as the combination between the revenue that a business entity generates and the monetary and opportunity costs that it pays.

Accounting profit, on the other hand only accounts for the monetary costs that a business entity has to pay and the revenue that it generates.

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