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26 May, 14:59

Russ owns a fried chicken stand that operates at the local beach. in calculating how much he earns from his business, russ notices a difference between his economic and accounting profits. why would russ/' economic profit differ from his accounting profit?

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  1. 26 May, 15:04
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    Economic profit is the monetary costs and opportunity costs a company pays and the revenue a company receives while accounting profit is the monetary costs a company pays out and the revenue a company receives. Therefore the economic profit will be lower than the accounting profit because the opportunity costs, implicit and explicit, are included in the calculation.
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