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Accounting cost is only the explicit costs, which are input costs that require and outlay of funds from the company. Economic costs include implicit and
Accounting cost is only the explicit costs, which are input costs that require and outlay of funds from the company. Economic costs include implicit and explicit. Implicit costs are input costs that don't require an outlay of cash. Because these costs are ignored, the textbook tells us that the accounting profit is usually higher than economic profit.
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