Can economic profit ever exceed accounting profit?
No. Economic profit = Accounting profit - Implicit costs. Economic profit could be equal to accounting profit if there were no implicit costs, but in the presence of implicit costs, economic profit will be less than accounting profit.
You might also like to view...
In a majority-rules democracy, economic thinking suggests that we should expect to see institutions and policies that
a. are short-sighted. b. take the long view, sacrificing current benefits to get larger future benefits. c. benefit the common citizen at the expense of narrow special interest groups which, after all, have fewer voters. d. are biased against income transfer programs, regardless of constitutional limits.
Is it possible to impose a burden on future generations by increasing the public debt?
What will be an ideal response?