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Economic profit and opportunity cost

2 videos
Economic profit and accounting profit are two different things (the difference being that economic profit takes into account opportunity cost). Confused? This tutorial lays it all out with the example of a restaurant.

Economic profit vs accounting profit

VIDEO 8:06 minutes
Difference between a firm's accounting and economic profit

Depreciation and opportunity cost of capital

VIDEO 8:10 minutes
How to account for things when you own the building instead of renting it