Economic profit is:

A) less than accounting profit if implicit costs exist.
B) always equal to accounting profit.
C) greater than accounting profit if implicit costs exist.
D) less than accounting profit if implicit costs are zero.

Implicit Costs

Indirect, non-out-of-pocket expenses which represent the opportunity costs of using resources owned by the firm for its operations.

Accounting Profit

The difference between total revenue and explicit costs.

Economic Profit

The difference between total revenue and total costs, including explicit and implicit costs.