Difference between accounting profit and economic profit, Macroeconomics

Assignment Help:

What is the difference between accounting profit and economic profit?

Accounting Profit:

The accounting profit of a business is the revenue of business minus the explicit costs and depreciation.

Economic Profit:

The economic profit of a business is the revenue of business minus the opportunity cost of its resources. This is frequently less than the accounting profit.


Related Discussions:- Difference between accounting profit and economic profit

Effects of fiscal policy, (Effects of Fiscal Policy) Recently some legislat...

(Effects of Fiscal Policy) Recently some legislators have called for tax increases to reduce the federal budget deficit. Conservatives have countered that such tax increases could

Public sector, Are there any current subsidy or welfare issues that are bei...

Are there any current subsidy or welfare issues that are being discussed or addressed in parliament or in municipalities

Product of demand curve, The demand curve for product X is given by QXd = 3...

The demand curve for product X is given by QXd = 340 - 4PX.\ a) How much consumer surplus do consumers receive when Px = $45? b) How much consumer surplus do consumers receiv

Data and methodology - macroeconomy analysis, In order to estimate the VAR,...

In order to estimate the VAR, I have firstly to specify the data which will be analysed. As it is my aim to observe the correlations between oil prices and key macroeconomic variab

Deficient demand, ASuppose an economy has overbuilt and suffers from excess...

ASuppose an economy has overbuilt and suffers from excess capacity A recession ensues due to firms cutting back on expenditures. Is deficient demand more easily remedied by monetar

Bank of canada announces that it will raise the money supply, Suppose the B...

Suppose the Bank of Canada announces that it will raise the money supply in the future but does not change the money supply today. Using the Fisher equation, explain what happens t

Supply & Demand Graph, Ok, so the supply curve for goal in the U.S. is perf...

Ok, so the supply curve for goal in the U.S. is perfectly elastic, while the demand curve has the usual shape. In 2011, the U.S. used 1,003 million tons of coal at an average price

Why economists use real gdp rather than nominal gdp, Explain why we cannot ...

Explain why we cannot measure the national product simply by adding up the production of all firms. Why do the economists use real GDP rather than nominal GDP to gauge economic

What are the important aspects in tracking the macro-economy, What are the ...

What are the important aspects in tracking the macro-economy? Important aspects in tracking the macro-economy: a. How economists utilizes aggregate measures to track the pre

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd