ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Calculates the book profit or loss as well as the economic gain or loss in each of the following situations:

A company with total revenue of $130 million, explicit costs of $80 million and implied costs of $20 million

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Accounting profit evaluates the monetary costs that firms incur in production process and total revenue that firm earned from its operations.

Economic profit evaluates both the monetary costs and the opportunity costs and total revenues from the production process.

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