Suppose that for a particular business there are no implicit costs. Then

A) accounting profit will be greater than economic profit.
B) accounting profit will be the same as economic profit.
C) accounting profit will be less than economic profit.
D) the relationship between accounting profit and economic profit cannot be determined without more information.

Implicit Costs

The opportunity costs of using resources that a company already owns, not directly paid for with cash.

Accounting Profit

The total revenue of a business minus the explicit costs, representing the financial gain in accounting terms.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the additional return over the investor's opportunity cost.