Which of the following statements accurately describe the differences between accounting profit and economic profit? Select all that apply.

Accounting profit is the total income a business makes after subtracting all explicit costs, like wages and rent. This profit is shown on financial statements and is often what people think of when they hear "profit. " On the other hand, economic profit considers both explicit costs and implicit costs, which are the opportunity costs of using resources in one way instead of another. For example, if a business owner could have earned $50,000 working elsewhere but chose to run their own business, that amount is an implicit cost. Therefore, if a business has a high accounting profit but low or negative economic profit, it might not be as successful in the long run as it appears.