What happens to accounting profit compared to economic profit when there are implicit production costs?

Show Answers

Accounting profit is greater than economic profitEconomic profit remains zero at all timesEconomic profit surpasses accounting profitAccounting profit is always zeroEconomic profit and accounting profit are identical

Explanation

When implicit costs are included, accounting profit does not account for them, so it will be higher than economic profit, which deducts both explicit and implicit costs.