Types of Profit- Old Version

Mr. Clifford introduces the concept of profit, distinguishing between accounting and economic profit. He humorously describes the rivalry between accountants and economists, emphasizing their different approaches to calculating profit. The video explains explicit and implicit costs, using Lebron James as an example to illustrate economic profit. It concludes with the concept of normal profit, where firms break even in competitive markets.

Why do economists and accountants have different views on profit?

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What does it mean when a business has zero economic profit?

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