Make big profit

One Response to “Accounting profit and economic profit differ because economic profit fails to take into account opportunity co?”

1. zeuz, on June 3rd, 2010 at 3:05 am Said:

   True.

   Example:

   I’m self-employed earning $100,000 (after all expenses). So, my accounting profit is $100,000.

   But, I could work for someone else and earn $80,000 (including benefits). Therefore, my economic profit is only $20,000.

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