Question

What is the difference between economic profit and business profit?

Answer 1

economic profit is the difference between total revenue and total costs, but total costs include both explicit and implicit costs. implicit cost include opportunty cost of next best alternative.

business profit  is the difference between total revenue and total costs, but total costs include only explicit costs such as cost of raw material , employee wages.

so, economic profit is lower than business profit because economic profit include both explicit and implicit cost