6. A recent issue of Business Week reported the following:

During the recent auto sales slump, GM, Ford, and Chrysler decided it was cheaper to sell cars to

rental companies at a loss than to lay off workers. That's because closing and reopening plants is

expensive, partly because the auto makers' current union contracts obligate them to pay many

workers even if they're not working.

8

When the article discusses selling cars "at a loss," is it referring to accounting profit or economic profit?

How will the two differ in this case? Explain briefly.