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Analyze the concepts of accounting profit and economic profit. How are they different, and why are...

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Economics

Analyze the concepts of accounting profit and economic profit.How are they different, and why are there two different concepts?Why do economists focus on the “economic profit” concept?Specifically, what does a focus on economic profit tell us aboutdecision making and when changes in behavior (or undertakingprojects) occur?

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Accounting Profit It is the net income of a company after various costs and expenses are deducted from the revenue Accounting Profit is net amount left after deducting Explicit costs Amount paid outside to hire factor services eg wages for labourers that are incurred while running the business Economic Profit It is the profit acquired after    See Answer
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