Answer:
The answer is: Economic profits is equal to the difference between accounting profits and implicit costs.
Explanation:
Unlike accounting profits which only take explicit expenses into account, Economic profits take both explicit and implicit costs into account to come up with the net worth a firm/a project is generating.
These implicit costs are opportunity costs which by operating a firm or by taking a project, an economic benefit has to be sacrificed for the firm or the project to be operated/ carried out.
So, to come up with economic profit from accounting profit, we have to further subtract implicit cost from accounting profit or:
Economic profit = Accounting profit - Implicit costs.
