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1. Describe the impact of explicit and implicit costs in calculating accounting profit and economic profit....

1. Describe the impact of explicit and implicit costs in calculating accounting profit and economic profit.


2. Assume you are a business manager for a firm that does a few million dollars worth of business each year. Select the profit measure (accounting profit or economic profit) you believe provides the most helpful information in making business decisions, and explain why?


Note: once again, no hedging your bet here by selecting both measures or combinations of both measures. :-) Select one measure only.

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