Why do you think we should care about opportunity cost rather than focusing only on explicit cost?
An explicit cost is a direct cost of running a business such as a wage, rent. Accounting profit includes only explicit cost. On the other hand, implicit cost means opportunity cost which a firm must give up in order to continue what it already owns. Implicit cost is not a direct cost. Economic profit includes both explicit cost and implicit cost.
Accounting profit= Total revenue- explicit cost
Economic profit= Total revenue-(explicit cost+Implicit cost)
Thus economic profit is lower than accounting profit. A firm can take a decision whether to continue the business or not to continue on the basis of economic profit. If opportunity cost is a big amount then it can be a loss to continue the business if total revenue<(explicit cost+implicit cost). Only explicit cost can lead a misguiding result so we should care about opportunity cost rather than focusing only on explicit cost.
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