Explore BrainMass

Explore BrainMass

    Economic profit and opportunity costs

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The key difference is that economic profit factors in implicit costs (sometimes called opportunity costs). Just what do we mean by opportunity costs anyway?

    © BrainMass Inc. brainmass.com October 9, 2019, 9:29 pm ad1c9bdddf

    Solution Preview

    Opportunity cost

    The opportunity cost or alternative costs are the returns from the second best use of the organization's resources or here in this case the individual's capability.

    For example a farmer who is producing wheat can also produce potatoes with the same factors.

    Therefore the opportunity cost of a ...

    Solution Summary

    This explain the concept and interrelationship between Economic profit and opportunity costs